Serb Natlfed

Main Menu

  • Home
  • Serbian finance
  • Serbian banks
  • Serbian economy
  • Serbian loans
  • Financial affairs

Serb Natlfed

Header Banner

Serb Natlfed

  • Home
  • Serbian finance
  • Serbian banks
  • Serbian economy
  • Serbian loans
  • Financial affairs
Financial affairs
Home›Financial affairs›Morehead City Approves Refinancing Plan for $ 4.8 Million in Expected Savings Over the Term of 3 Loans | News

Morehead City Approves Refinancing Plan for $ 4.8 Million in Expected Savings Over the Term of 3 Loans | News

By Corey Owens
December 18, 2021
0
0


[ad_1]

CITY OF PLUS-HEAD – City council on Thursday approved a refinancing deal that will save Morehead City nearly $ 4.8 million over the term of three loans.

Seeking to take advantage of current relatively low interest rates, the city recently solicited bids from several financial institutions on a program to consolidate and refinance three of the city’s existing installment loans. The board held a special meeting Thursday morning to review the offers and hold a public hearing – in which no public commented – on the proposed refinancing deal.

The three loans, with current principal balances, interest rates and remaining years of payment, are:

· Acquisition of land and improvements for Katherine Davis Park, $ 2,092,395.99 in principal remaining at 3.05% interest rate with 15 years of payments remaining.

· Construction of a police station and a 911 emergency communications center, with $ 4,184,706.61 remaining in principal at an interest rate of 4.125% with 30 years of payments remaining.

· Acquisition of land and construction of Fire Hall # 2, $ 1,820,472.60 in principal remaining at 3.75% interest rate with 31 years of payments remaining.

The city plans to use the $ 1.2 million in proceeds from the sale of the former National Guard arsenal on Bridges Street as a down payment on the police station loan, reducing the principal balance to approximately $ 3,094,500. With this down payment incorporated into the equation, the total principal balance to be refinanced on three loans is $ 7,049,600.

On the recommendation of staff who worked on the refinancing plan, the board on Thursday approved a deal with Sterling National Bank, which chief financial officer Jewel Lasater said was offering the lowest rate on the best terms. After consolidation, the loans will have an interest rate of 1.91% with a term of 15 years, which will cut repayment time in half and result in significant savings for Morehead City.

To pay off the full amount in 15 years – about half the time under current terms – Morehead City will increase its annual payments by about $ 16,000 per year to an annual debt payment of about $ 544,000. City officials believed it was a fair price to pay for the final savings of $ 4,785,626.36 over the life of the three loans.

“The savings are incredible,” said David Horton, board member. “Even though (the payments) are a bit more short term, in the long term the savings are huge.”

With a unanimous vote to approve the refinancing, the deal must be approved by the state’s local government commission before it is finalized. The LGC will meet in early January.

Contact Elise Clouser at elise@thenewstimes.com; by phone at 252-726-7081 ext. 229; or follow us on Twitter @eliseccnt.

[ad_2]

Related posts:

  1. Why use a loan instead of credit
  2. TEB BANCORP: Management report and analysis of the financial situation and operating results (form 10-K)
  3. M&T Bank Corporation – Consensus indicates potential rise of 18.2%
  4. Nicholas Financial Enters $ 175 Million Senior New Business
Tagsinstallment loansinterest rateslong termnational bank

Categories

  • Financial affairs
  • Serbian banks
  • Serbian economy
  • Serbian finance
  • Serbian loans

Resent Posts

  • Wednesday, November 23, 2022 – La Minute Monocle
  • All 17 Man Utd first-team players set to feature in friendlies
  • Veterinary Telemedicine Company Dutch launches pet insurance in partnership with Pets Best | Company
  • Pančevo Jazz Festival 2022 (Serbia) – London Jazz News
  • The best mortgage finance stocks to buy right now

Archives

  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • Privacy Policy
  • Terms and Conditions