We have heard back from Northrim bank and they have offered 3 payment options noted below for the purchase of the house adjacent to the shelter on 10th ave.
I suggest that we accept option #2 which gives us a more conservative time frame to pay off the loan, but we proceed with advanced payments more in accord with option #3 (there is no penalty to do this). In an ideal situation, would could have the loan paid off in approximately 5-6 years, with less paid on overall interest. We would like to proceed with this option on Friday, May 17, unless there is opposition from any of the board members prior to the close of the day on 5/16.
- 1. 5 year note with 15 year amortization. Upside is low monthly payment (under $700.00) downside is that in 5 years we have to re-fi or pay balance off. not sure the exact interest here but most of the payment would be interest.
- 2. 10 year straight, payment would be under $1,000.00 and would be done in 120 months. approximately 21k in interest at 5%
- 3. 5 year note, all paid in 60 months, monthly payment would be under $1,600.00. approximately 11k interest at 5%
I dont believe a motion is necessary since the minutes already record a motion. This question is merely a preference question. You are welcome to disagree – but that is my take here.
Brad moved that FYA borrow up to 80% for the building from a financial institution with a cash down payment from FYA; or, if there is no other alternative, we offer to borrow from Patrick under similar terms. Rilene seconded; approved unanimously.
Rilene had an excellent question that did not get answered.. Is a motion necessary?
Option 2 receives my vote!
I hope I’m not jumping the gun, but I have requested a draft closing statement from Northrim, showing us what the numbers would be if we proceed like this.
Dave Bates and I, for what it matters, agree with option 2 as well.
Agree with Brad, lets proceed with # 2.
Dave
Do we need a motion? or just say that I like option #2 best.
Since our finance guy agrees with #2 I agree; what was the result of Patrick versus ‘other’ down payment for the loan?
I concur. Option #2 gives us the greatest flexibility and is well within our current and projected future ability to pay.