Important clarification......Paul3eb wrote:...if i messed up, please correct me..
It is not a loan exactly, it is a land contract financed through the Murray Family. Although it is like a mortgage and there is interest, it's important to remember we did not borrow this from a bank and early payoff has some issues.
This is the way I understand it, but other BOD members that have been around longer than me should know better......
Johnny negotiated this contract with the Murray family and when you think about it they are selling to us at a loss. The oil company offered them more cash and they still chose to sell to us even though we were scrambling to get the paper work done and our option to buy had expired. Know that this man has taken time off, driven to the courthouse at his own expense just so he could testify in court for our benefit. If we pay double the payment, that has big complications for him as far as accounting and taxes go and also cuts the amount the Murray family will get out of the deal (and we got a huge deal on it in the first place).
So, I'm not smart enough to know if it's possible to pay off early and save a ton of money, but I do know that would probably be a burden to our overly generous finiancier.
Granted, we raise a quarter million this year we can always invest in some sort term bonds or a Tahitian winter retreat!