Prepayment Calculator

Calculator Accuracy

The Chatham Prepayment Calculator result is an estimate only. Since Lockout Dates, Without Penalty Dates, and specific debt prepayment provisions are not currently factored into the calculations, these results should not be used as a precise Yield Maintenance Premium.

For complete clarity and further explanation of prepayment costs, please contact Chatham’s defeasance and prepayment experts.

Estimating the Cost of Your Prepayment

Please enter your economic data above and click Calculate to receive your estimates.

The Chatham Prepayment Calculator is designed to give an estimated prepayment penalty for the specified loan. It is designed for use with fixed-rate, US-Denominated debt based on the general assumption that the prepayment premium equals the greater of the minimum penalty, or the present value of all scheduled future debt payments (after the prepayment date) discounted at a treasury yield, less the principal repaid.

Accuracy

This Prepayment Calculator is designed to provide an estimate only. Because Lockout Dates, Without Penalty Dates, and specific debt prepayment provisions are not currently considered in the calculations, the Prepayment Calculator results should not be used as a precise indication of the Yield Maintenance Premium.

Regardless of how easy it is to use our automated calculator, we encourage you to contact our Defeasance Team as 610.925.3120 for a detailed analysis of your prepayment or defeasance costs.

Interest Rate Calculation Help

Interest is normally calculated on the basis of a 360 day year. Your loan document will determine how the days are counted in each period: “30/360″ – assumes 30 – day months, “Actual/360″ – uses the actual number of days in the month.

Amortization (months) Help

Typically the amortization is 30 years (360 months) or 25 years (300 months) and can be found in the loan documents.

Date of First Full Payment Help

Loans will often have a short interest only period between the loan closing and the start of amortization. This date is the date of the first full principal and interest payment.

Maturity Date Help

The earliest date on which you can repay the loan, also referred to in loan documents as the Anticipated or Optional Repayment Date.

Date of Prepayment Help

Select any date for prepayment, however the prepayment date that will ne used in the calculation will be the first scheduled loan payment date after the date you have entered. The date selected for prepayment must be today’s date of greater.

Minimum Penalty (%) Help

A default minimum penalty of 1% of the outstanding principal balance at the time of prepayment is assumed. If a different minimum penalty % is known, it can be entered here.

Treasury Rate Shift (bps) Help

A default treasury shift of 0 basis points is assumed. The spread entered into this field will be added to the Treasury Yield and used to discount future debt payments for the calculation of the Yield Maintenance Premium. These additional basis points added to the Treasury Yield, if any, are typically defined in the loan documents.

Treasury Rate Decompounded Help

A default of “no decompounding” is assumed. If selected “yes,” the interpolated treasury rate is decompounded to a monthly rate, which will result in an increase yield maintenance penalty.