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<br />í <br />I <br /> <br />( <br /> <br />EXHmIT F <br /> <br />METHOD OF CALCULATION OF BELOW-MARKET INTEREST RATE <br /> <br />Assuming the following facts with respect to Eligible Borrower A's First <br />Mortgage Loan and Consortium HOME Loan, the calculation of the Below-Market Interest Rate <br />is as further follows: <br /> <br />A. First Mortgage Loan = $80,000. <br /> <br />B. First Mortgage Loan Term = 30 years. <br /> <br />C. Consortium HOME Loan = $10,000. <br /> <br />D. Below-Market Interest Rate is by defInition a fIxed rate. <br /> <br />1. Determine the Market Rate. <br /> <br />10-year U.S. Treasury Note Rate = 7.33% <br />Market Rate = 7.33% + 2% = 9.33% <br /> <br />II. Determine the Market Rate Monthly Payment. <br /> <br />Market Rate Monthly Payment = the monthly amount necessary to fully amortize <br />$80,000 at 9.33% oyer 30 years. <br /> <br />Market Rate Monthly Payment = $662.78 <br /> <br />II. Determine the Minimum Matching Contribution. <br /> <br />Minimum Matching Contribution = Consortium HOME Loan x 25 % <br />$2,500 = $10,000 x 25% <br /> <br />m. Determine the Monthly Yield Foregone. <br /> <br />Monthly Yield Foregone = the monthly amount necessary to fully amortize $2,500 at <br />9.33% oyer 30 years. <br /> <br />Monthly Yield Foregone = $20.72 <br /> <br />F-I <br />