Start with comparable assumptions
Use the same loan amount, expected holding period and repayment date when comparing proposals. If proceeds differ, show the additional equity requirement separately.
Identify what changes
For floating-rate debt, record the benchmark, reset convention, floor and spread. For fixed-rate debt, confirm when the rate is set and whether a lock has a cost or expiration.
Add the other costs
Include origination, legal, third-party, servicing, hedging, extension and exit costs where applicable. Avoid treating a quoted coupon as the total cost of the loan.
Read the terms that affect an exit
Prepayment provisions, release conditions, guarantees, reserves and extension tests can change the comparison. Consider the base plan and a delayed sale or refinance.
Compare your term sheets or view official benchmark observations.