Comparing Mortgage Loans

[Monika Dehra]

Hi.

Please find the excel file. It has the Mortage loan calculation.

Thanks.
Monika

I have a business mortgage of $ 5M which was taken out several years ago and the balance owing currectly is $ 1.25M at an interest rate of 7.5%.
I require $ 20M for expansion purposes which I can finance as follows:
1) $3.75 M can be advanced on the original loan
2) I have cash of $ 2M which I can deposit into the current mortgage and receive interest at 7.5.5 % until the funds are required, but will be charged a deposit penalty of 0.1% per month
3) I can borrow $ 15M from the current bank at 7.0%. A opposition bank is prepared to lend me $ 15M at 6.25%
4) I can borrow the full $ 20 from an opposition bank at 5.85%. However If I cancel the existing morgage with the current bank, there is a penalty for cancellation of the mortgage of 1.5%

I would like to set up a spreadsheet to do a comparison to determine which is the better deal.

Your assistance in doing this comparision on Excel is most appreciated