Loan Term and Amoritization


Hi Frank,

You mentioned on the call that the amount financed would be amoritized over 30 years, but the note would be 10-15 years. Is there a balloon payment due for the balance at the end of the 10-15 year note?


I didn’t hear the call but yes, thats really typical on commercial. The loan term is amortized over a certain period 20/25/30 years and will typically balloon or reset in a given time and then you need to refi, sell , or pay the loan off at that term ( i.e. 5 year , 10 year, 15 year)


Thank you very much!



FYI and anyone else on this blog - I have a simple loan amortization in MS Excel 2013. I’d be happy to send it to anyone who asks. Please email me.