Excerpt from: Useful Online Resources for Realtors
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| March 19, 2007 | | Clever web based “Defeasance Calculator” |  Here’s the situation: You have a very favorable offer on your real estate investment property but find that, in order to payoff your loan, you will need to provide the lender with replacement collateral sufficient to pay off the debt and maintain the yield being experienced on the current obligation. They call this “defeasing “the loan.
This clever web based “Defeasance Calculator” will help you estimate the total cost to defease your loan. The total cost includes the cost to purchase the defeasance collateral (the government securities) and the transaction costs.
If some of these terms make your eyes glaze over, just visit this interesting site for all you will ever need to know about defeasance! This is a great online resource and a useful real estate tool. Visit this cybertip!
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