Trying to understand balloon mortgages (loan, interest rate, real estate, rate)

[doss1]

Hi all,
I am trying to close a deal with a landowner to sell me about 2 acres. We're not using an agent. The landowner is willing to do owner financing for 5 years under a balloon mortgage.

My question is...can I dictate how much I want to pay monthly before the balloon?

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%?

Thanks!

[davecj]

So you want real estate advice without paying for real estate services? Maybe try google then.

[doss1]

Just need help with the math, that's all. Don't worry, have a real estate agent for another piece of land.

[ShanetheMortgageMan]

It depends on how long the amortization term is. If it's a 30-year amortization, then the monthly P&I payment would be $155.57/mo.

The terms of your payment would be dictated in the Note you sign for the seller financing.

[MrRational]

Originally Posted by davecj

So you want real estate advice without paying for real estate services? Maybe try google then.

hahaha
maybe you misunderstand the idea of what a forum is?
or do you have a paypal tie in with your other comments?

[Okey Dokie]

If I understand the deal correctly, the payment would be $582.21 per month for 59 months on a loan of $31,900. ($36,900 minus $5,000 balloon = $31,900). Then you'll have the $5,000 payment for payment #60.

[doss1]

Yep, thanks!

[DowntownVentura]

Okie Dokie had the right idea but a little off on the math. using that technique, you are not paying interest on the $5,000.

Not that it makes a huge difference with that low an interest rate but I think the payment should be 59 payments of $594.71 and the 60th payment of $5,000.