Defeasance Calculator

How Does This Calculator Work?

Our Defeasance Calculator uses the information you provide to quickly:

1. Recreate the amortization schedule for your loan to calculate when and how much the defeasance portfolio of securities will need to earn to cover the payments required by your loan.

2. Apply recent market prices and yields for U.S. Treasury and Agency securities that will earn the required cash each month until the defeasance period ends.

3. Estimate mandatory fees paid to third parties who provide services needed to complete the legal process.

Each input box has a hidden note with helpful information

Check the box next to each “?” along the right-hand column to reveal the note. The “Close All” checkbox at the top of the column quickly closes all open notes. Uncheck “Close All” to reopen selected notes.

How accurate is a Defeasance Calculator?

All Defeasance Calculators rely on the accuracy of the inputs provided to them. A careful reading of your loan agreement is needed to determine all the details relevant to your situation. For instance, if various dates do not precisely align with when monthly payments are made, there may be several days at the beginning or end of an amortization schedule that ideally would be taken into consideration. And the size of various fees is dependent on which firm is the Master Servicer for your loan. Different calculators make different simplifying assumptions about these technical nuances. However, using reasonable rules of thumb will nearly always provide a useful indicator of the overall costs you can expect.

We’re experts at reading loan agreements for the relevant details, so please call us at (415) 510-2100 for help.