Year LIBOR monthly annual
11/1 payment payment
% $ $
93 6.5 9,933.62 119,203.44
94 7.078 10,132 121,584
95 5.672 9,653.45 115,841.40
96 5.696 9,661.51 115,938.12
97 6.110 9,801.06 117,612.72
98 5.244 9,510.52 114,126.24
99 6.261 9,852.25 118,227
00 (end 4/1) 6.97 10,094.78 50,473.9
Total payments = points + fees + total annual payments
$14,000 + $200 + $873,006.82 = $887,206.82
Monthly payments @ 10% = $11170.38
Annual payments (93 - 99) = $134,044.56
Total loan payments = points + fees + total annual payments
= $14000 + $200 + $994,163.82 = $1,008,363.80
In this case, AMR financing would have saved $121,156.98 over the life of the loan. This is due to the favorable interest rates throughout much of the 90's, as reflected in the LIBOR index for that period. It should be noted that if this wer
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