Scottville, 49454 Northwest Michigan | I've got some scenarios I'd like you guys to look at with respect to interest rates. These are interest rate options on our machinery line of equipment.
1. We're currently paying 2.76 percent. This is a variable rate based on the one month libor. We could stay at a variable.
2. 5 year fixed at 4.1 percent.
3. variable for the first two years, and then go to a fixed rate of 4.75 percent for the last 3 years.
4. 7 year fixed at 4.6 percent.
5. variable for the first two years, and then go to a fixed rate of 5.27 percent for the last five years.
The fixed interest rates are secured via what is called a "swap", which is essentially using the futures market on interest rates to secure them. I bring that up, because it may be important to know that once we enter one of these swaps, essentially we're locked into the interest rate for the duration of the loan.
I sure appreciate your thoughts and opinions.
thanks, gordon |
interest rates
