Calculators
Commercial loans rarely amortize the same way a 30-year residential mortgage does — see your actual payment and what balance is really left when the term ends.
$4,241
Monthly payment (P&I)
$471,800
Balloon balance due
$380,681
Interest paid by year 10
Commercial loans commonly amortize over a longer period (25-30 years) than the actual loan term — the balance still due when the term ends is the balloon payment, usually handled by refinancing.
These calculators provide estimates for educational purposes only — they are not an appraisal, a loan quote, or tax advice. Real underwriting, valuation, and 1031 exchange outcomes depend on your specific deal, lender, and a qualified intermediary/CPA — treat these as a starting point for a conversation, not a final number.
Want a real read on a specific deal? Talk to me directly.
Frequently Asked
It keeps the monthly payment lower (spread over a longer schedule) while giving the lender a chance to re-underwrite the deal periodically — the borrower typically refinances or sells before the balloon comes due.
That's the real risk of balloon financing — plan your exit (refinance, sale, or payoff) well before the term ends, not at the last minute, especially in a rate environment that could shift.