New Deal Checklist

Loan Term

1. How often do you hold loans to full maturity versus paying them off well ahead of maturity?

2. Does your typical disposition/refi date align closely with your typical financing maturity date?

3. Have you quantified the term premium of an early exit?

Prepayment Penalties

1. Have you considered your prepayment penalty as an interest expense included in your all-in rate?

2. If your all-in rate were effectively 6% instead of 4% because of your prepay penalty, would you choose this loan?

Fixed vs Floating

1. Do you think the market is accurately projecting where rates will be in 5 to 10 years?

2. Does a Fed rate hike make sense with current inflation targets?

3. If you choose fix or float and you're wrong, how much might you be wrong by?

4. Is there an accelerated repayment option (e.g., partial release)?

5. What would an interest rate shock do?

6. Have you incorporated hedge costs?