Purchase vs. Refinance
Acquisition vs. recapitalization — same property, different math.
On a new purchase you pay a full premium and inject equity. On a refinance of an already-insured asset, the premium credit partially offsets the new premium and equity can be pulled out. This tool runs both side by side on identical inputs.
New acquisition · full premium
Purchase · MLI Standard
Max loan (pre-premium)
$12,795,668
LTV 63.98% · cap 85% · DCR 1.2x
Amortization40 yrs
Premium (gross)$428,655 (3.35%)
Premium credit—
Net premium$428,655
Financed loan (incl. premium)$13,224,322
Annual debt service$791,667
DCR achieved1.20x
Cash flow Y1$158,333
Equity in$7,204,332
Cash out to borrower—
Cash-on-cash2.20%
Existing · 85% LTV · 30% premium discount
Refinance · MLI Select (100)
Max loan (pre-premium)
$14,199,022
LTV 71.00% · cap 85% · DCR 1.1x
Amortization40 yrs
Premium (gross)$407,512 (2.87%)
Premium credit− $180,000
Net premium$227,512
Financed loan (incl. premium)$14,426,534
Annual debt service$863,636
DCR achieved1.10x
Cash flow Y1$86,364
Equity in$0
Cash out to borrower$2,921,510
Cash-on-cash1.49%
Δ Max loan (refi vs. purchase)
$1,403,354
Premium savings (credit)
$180,000
Applied to new refi premium — not refunded.
Refi cash-out
$2,921,510
Net of existing payoff, net premium, closing costs.