|
Premium shall be made of three components;
Policy Assessment Fee
Charge for completing the thorough analysis of the directive(s) to
be funded for the preparation of an expert opinion.
Loan origination fee
Interest rate
Example of determination of loan amount
Change order directive value as defined by contractor $1,000,000
Change order directive value as defined by owner $0
Delta $1,000,000
Change order directive value as defined by preliminary assessment $800,000
Loan to Assessment (80%) $640,000
Origination Fee @ 3 points $19,200
Origination Commission @ 30% $5,760
Net origination income $13,440
| Premium rate (prime = 6%) | Earned
To Date | Interest | Total
Return | Annual Rate
of Return |
| First 30 days at prime+6 (12%) | 13,440 | 6,400 | 19,840 | 37.20% |
| Next 30 days at prime+6 (12%) | 19,840 | 6,400 | 26,240 | 24.60% |
| Next 30 days at prime+5 (11%) | 26,240 | 5,867 | 32,107 | 20.07% |
| Next 30 days at prime+4 (10%) | 32,107 | 5,333 | 37,440 | 17.55% |
| Next 30 days at prime+3 (9%) | 37,440 | 4,800 | 42,240 | 15.84% |
| Next 30 days at prime+2 (8%) | 42,240 | 4,267 | 46,507 | 14.53% |
| Next 30 days at prime+1 (7%) | 46,507 | 3,733 | 50,240 | 13.46% |
| Next 30 days at prime+1 (7%) | 50,240 | 3,733 | 53,973 | 12.65% |
| Next 30 days at prime+1 (7%) | 53,973 | 3,733 | 57,706 | 12.02% |
| Next 30 days at prime+1 (7%) | 57,706 | 3,733 | 61,439 | 11.52% |
| Next 30 days at prime+1 (7%) | 61,439 | 3,733 | 65,172 | 11.11% |
| Next 30 days at prime+1 (7%) | 65,172 | 3,733 | 68,905 | 10.77% |
| |
| Year two | 68,905 | 44,796 | 113,701 | 8.88% |
| Year three | 113,701 | 44,796 | 158,497 | 8.26% |
| Year four | 158,497 | 44,796 | 203,293 | 7.94% |
|
