Need balloon payments explained? Ashley and Tony have got the answers you need! On this weeks’ Rookie Reply, Neil is asking: if a loan is amortized over thirty years, how is there a balloon payment at fifteen years? What’s the difference between the two?
Loan amortization can be tricky depending on how creatively you’re financing a real estate investment. Throw in a balloon payment, and most rookies will walk away confused. In reality, balloon loans are a pretty simple concept and can help you secure better deals like seller financing a property. Before you take private money or accept owner financing, be sure to run your full amortization schedule so you can see how much you’ll need exactly to pay off your balloon loan.
Have any other lending or real estate financing questions? Let us know in the comments below, we may use your question in an upcoming Rookie Reply!
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Question of the Episode 👇
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Don’t Let a Balloon Payment Burst Your Bubble:
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Calculate Your Monthly Mortgage Payment:
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How to Make an Amortization Schedule + FREE Download:
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Join the Real Estate Rookie Facebook Group:
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Follow Ashley and Tony on Instagram:
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Episode 134
Show notes at: www.biggerpock...