I am quite glad to see that Lighthaven is on a path to financial sustainability, as I sometimes attend events there, and I am very much not looking to be subsidized by anyone’s charity. One clarifying question. The rough Lighthaven budget above has a line for “interest”. Am I correct in assume that that is the entire mortgage payment, both interest and principal, not just the interest? In other words, by successfully making the $1M payment each year, the amount you owe the bank is going down each year and will eventually hit zero?
Good question. We don’t pay our principal, the mortgage is structured as a balloon payment due in ~17 years (at which point the default thing to do would be to refinance or sell the property).
I am quite glad to see that Lighthaven is on a path to financial sustainability, as I sometimes attend events there, and I am very much not looking to be subsidized by anyone’s charity. One clarifying question. The rough Lighthaven budget above has a line for “interest”. Am I correct in assume that that is the entire mortgage payment, both interest and principal, not just the interest? In other words, by successfully making the $1M payment each year, the amount you owe the bank is going down each year and will eventually hit zero?
Good question. We don’t pay our principal, the mortgage is structured as a balloon payment due in ~17 years (at which point the default thing to do would be to refinance or sell the property).