About The Loan Calculations:
Funds Needed is the amount you will require for your use after the
bonds are sold. The other costs (where permitted by law and regulations)
are added to the amount borrowed.
The Debt Service Reserve (DSR) is an amount put aside with the
Trustee to be available in the event you are unable to make a monthly payment
on time. You earn interest on this DSR which is credited toward your monthly
payments, and the principal of the reserve fund is used to help offset your
final year's debt service payments. The rate used to calculate the return on
the DSR here is the same as the bond rate.
Cost of Issuance Financed - Governmental regulations limit the amount of issuance costs which a 501(c) (3) corporation can finance with tax-exempt financing to 2% of the amount borrowed. Issuing costs beyond this limit will be approximately 2% which can be paid by you at closing or can be financed using taxable financing.
Rounding Amount - Municipal Bonds are issued in no smaller denomination than $5,000.
The amount borrowed will be rounded up to the nearest $5,000.
The Total Loan Amount is used as the basis in determining the payments
you will make. This gross payment may be reduced by the interest earned by
the Debt Service Reserve.
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