Comparing Two Mortgages (Incremental Cost of Capital)

M

MaxWaynecrest

New Member
Joined
Jul 24, 2013
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4
Hello,

I'm trying to solve for the incremental cost of capital for two loan options:

Option 1 (Recourse): $1.5MM loan amount, 4.25% coupon, 10 year balloon, and 30 year amortization
Option 2 (Non-Recourse): $1.0MM loan amount, 4.50% coupon, 10 year balloon, and 30 year amortization

I've built out my amortization tables, but I am having trouble calculating the incremental cost of capital - without using a NPV/Rate function - for Option 1 against Option 2 (above). Any help with a simple formula would be great help. Thanks in advance!!!
 

Excel Facts

What did Pito Salas invent?
Pito Salas, working for Lotus, popularized what would become to be pivot tables. It was released as Lotus Improv in 1989.
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