---

Help me figure out this balloon mortgage

Author	Message
	Add to del.icio.us Add to YahooMyWeb Add to Simpy Add to BlinkList
skunker Joined: 25 May 2011 Posts: 3 1.68 Dollars($)	Posted: Wed May 25, 2011 4:19 am    Post subject: Help me figure out this balloon mortgage Like 0 Dislike 0 I'm trying to figure out a balloon mortgage. How much would the monthly payment for a $36900 loan be if the balloon was $5000 on the last month of a 5 year loan at an interest rate of 3%? Does anyone know how to do the math? Thanks.
chrisgummerson Community Expert Joined: 29 Apr 2010 Posts: 704 Location: La Palma, CA 9.98 Dollars($)	Posted: Wed May 25, 2011 8:44 am    Post subject: Like 0 Dislike 0 Would need to know the amortization type, 10yr, 20yr. If the balloon payment is 5yr then your amortized over a period greater than 5yrs to yield the balloon payment. _________________ Chris Gummerson Bay Valley Mortgage Group bayvalleymortgage.com 714-367-5125
skunker Joined: 25 May 2011 Posts: 3 1.68 Dollars($)	Posted: Wed May 25, 2011 9:43 am    Post subject: Like 0 Dislike 0 OK, a little confused here. Say, I only want to pay $400/month for 5 years until the balloon is due. I believe this will put me around 16k for the balloon. Can I dictate my own terms like that?
chrisgummerson Community Expert Joined: 29 Apr 2010 Posts: 704 Location: La Palma, CA 9.98 Dollars($)	Posted: Wed May 25, 2011 9:55 am    Post subject: Like 0 Dislike 0 If you go with a private lender, then you could negotiate your terms. A traditional lender, its what they serve, not what you wish to order. Again, if you are taking a balloon mortgage, you also have an amortize period, any period longer than the balloon due on date. So if you have a 5 year loan with a balloon payment due in 5 years, then your loan did not amortize (payoff) within the 5 years, creating the balloon payment. So in this case, your loan would be 5/10 10 year loan, due in 5. This means your payments are calculated over ten years, but due in 5....You need to know the number your loan is amortized over. Using your number of 36,000 3% 5 year balloon is due for 5k, then your amortized period would be 68 months with a 59 payments of 576.35 and 1 balloon payment of 5,135.44 _________________ Chris Gummerson Bay Valley Mortgage Group bayvalleymortgage.com 714-367-5125
skunker Joined: 25 May 2011 Posts: 3 1.68 Dollars($)	Posted: Wed May 25, 2011 10:42 am    Post subject: Like 0 Dislike 0 Ok, we're getting somewhere. Thanks! I forgot to mention in the original email that the loan would be owner financed (a single person, not a bank), hence, this would be a private lender. Ok, so I think I understand your last post. Will study some more this evening. If I CAN negotiate to my favor, what kind of agreement should I aim for? I was also using this calculator: "bretwhissel.net/cgi-bin/amortize" [Link deactivated as per forum rules. Thanks.]
chrisgummerson Community Expert Joined: 29 Apr 2010 Posts: 704 Location: La Palma, CA 9.98 Dollars($)	Posted: Wed May 25, 2011 10:56 am    Post subject: Like 0 Dislike 0 There would be two types, if this is a purchase of real property. You can do a "contract sale" or lease option. The title stays in the original owners name, and you take possession. Full title is conveyed after the note has been paid in full. Or a "deed of trust" would give you all the ownership rights and possession of the property. His recourse would be the property in collateral. A local escrow company can prepare the notes and deeds for you. _________________ Chris Gummerson Bay Valley Mortgage Group bayvalleymortgage.com 714-367-5125

Quick Reply
Your Name
Subject
Image Verification	Enter the code above here : Can't read the image? click here to refresh
Message body

All times are GMT - 7 Hours

Page 1 of 1

---

We have chosen to apply the Creative Commons Attribution License to all works we publish. This work is licensed under cc by 2.0