What the balloon payment will be at the end of the loan term

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Reference no: EM131910991

Calculating Balloon Payment:

Assume that a seller is asking $30,000,000 for an office building. You approach the bank about arranging a loan, and the bank's appraiser also concludes that the value of the property is $30,000,000. The following are the bank’s standard terms for commercial mortgages:

LTV: 65% ; Term: 5 years ; Amort: 30 years ; Rate: 6.75% (monthly compounding)

After determining what the maximum loan amount is going to be use that number to determine what the balloon payment will be at the end of the loan term? (use assumptions from above)

Reference no: EM131910991

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