Interactive Lab

Prepayment Structure Comparison

The same loan, three structures, one payoff date: yield maintenance, defeasance, and a step-down, side by side.

Remaining Balance$5,000,000

Note Rate6%

Current Benchmark / Treasury Rate4%

Remaining Months on the Loan84 mo

Step-Down Percentage (If That Structure Applied)2%

Yield Maintenance

$609,661

Defeasance

$343,756

Step-Down

$100,000

Which structure actually applies is set in the loan documents -- this shows what each would cost on the same loan, for comparison only.