Loan Amortization and Balloon Payments Explained
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- Опубліковано 26 лис 2021
- 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 👇
/ 456456242068069
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Don’t Let a Balloon Payment Burst Your Bubble:
www.biggerpockets.com/blog/20...
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Calculate Your Monthly Mortgage Payment:
www.biggerpockets.com/mortgag...
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How to Make an Amortization Schedule + FREE Download:
www.biggerpockets.com/blog/20...
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Join the Real Estate Rookie Facebook Group:
/ realestaterookie
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Follow Ashley and Tony on Instagram:
@wealthfromrentals or / wealthfromrentals
@tonyjrobinson or / tonyjrobinson
Episode 134
Show notes at: www.biggerpockets.com/rookie134
Video starts at 2:02. The Intro is waaaay too long.
For those of us that are visual learners def do the white board. But I get it now thank u
Thank you for that high quality audio 🙏🙏 good episode on loans
Just taught me something. Thank you!
that balloon payment explanation was beeaauuuutiful!
This was amazing, thank you.
Can we do more of these types Rookie Replies!! Love Tony but I don’t think I get enough of Ashley. I want to be a wiz at Seller Financing
Learned something today. Thank you
You guys are great
Can we pay more money every month to bring down the total cost on the balloon payment at the end of the time.
Is there a fee is there’s a payment for the principal before the time for the ballon period?
For clarification, when the balloon payment is due you will have to pay the rest if the loan amount and the property will be yours free and clear? Thank you for the response in advance, love you guys!
Tony always throws off the questions to Ashley then piggy backs off her answers lol
1:55
The longest intro ever Jezuz