Terms for GUMF Loan
Lender: Georgia UM Foundation
- The loan will begin as a construction loan for phase 2 of the renovation at a rate of 5.75% beginning October 1 (estimated). The church will pay only interest during the construction phase until around April 1.
- After construction is completed, the loan converts to a 20-year mortgage at the prevailing rate at the time of conversion, likely around 6%. When the loan converts to a mortgage, the church will pay the principal and interest. The payment will be auto-drafted from the church’s bank account at the beginning of each month.
- The church will pay closing costs but no points or application fees.
- The interest rate is guaranteed for five years. The loan is renegotiated every five years to reflect the current interest rate at that time.
- No penalty for prepayment.
Sample Ballot for Vote on August 27, 2023
THE WAY | WOODSTOCK
AUGUST 27, 2023
The Way Woodstock church council has recommended that the church secure a $350,000 loan to complete the renovation of Latimer Hall without interruption, to be repaid with existing and future Making Room pledges/gifts and supplemented with funds from the church’s operating budget, if necessary.
YES. I support the church council taking out a loan now to complete the Latimer Hall renovation.
NO. I do not support the church council taking out a loan at this time. Work on Latimer Hall should stop until we have the funds in hand to cover the costs.