Posted by Mark-NC on January 04, 2001 at 17:58:10:
Norm,
I am not sure how you got your figures but this is the way I see it is;
Sales price = 150,000
10% down = 15,000
Amount financed = 135,000
Principal and interest payment at 9%= 1,086.24 per month amortized over 30 years.
Ballon principal amount due in 60 months = 129,552.83
The total amount of pricipal paid = 5,447.17
The total amount of interest paid = 59,727.23
I did this quickly but I think it is pretty close.
Mark
Balloon Payments - Posted by Norm
Posted by Norm on January 04, 2001 at 14:41:37:
I’d like to hear from anyone who has participated in a balloon payment type financing deal.
For example, if I worked out an owner-financed contract for $150,000 purchase price:
10% down = $15,000
Balance plus 9% interest = $147,150
Amortized for 30 years = $408.75 per month
Balance (Balloon payment due in 5 years) = $122,625
Is this right? I would owe the owner that much out of pocket in 5 years???