#### \$490,000 Commercial Loan With Balloon Payment at 3 Years

Monthly payment and balloon payment for a 490k commercial loan after 3 years
\$
%
Determine the monthly payment and balloon payment for a \$490,000 loan where the loan balance is paid off after 3 years.
The amortization length is the amount of time that the payment is set to and the loan length is for the amount of time until the balloon payment is due. This is a common way that commercial and business loans are structured. Usually, the loan is refinanced when the balloon payment comes due.

For example, a 490k loan with 5% interest and amortization set to interest only would have a payment of 2,042/month. However, the loan the remaining balance of 490,000 would need to be paid off or refinanced after 3 years.
Payment and balloon payment chart for a 490k commercial loan with a 3 year loan term.
 490k at 4% Monthly Payment Balloon Payment 5 Year Amortization 9,024 207,809 10 Year Amortization 4,961 362,944 15 Year Amortization 3,624 413,975 20 Year Amortization 2,969 438,991 25 Year Amortization 2,586 453,610 30 Year Amortization 2,339 463,044 35 Year Amortization 2,170 469,525 40 Year Amortization 2,048 474,171
 490k at 5% Monthly Payment Balloon Payment 5 Year Amortization 9,247 210,773 10 Year Amortization 5,197 367,712 15 Year Amortization 3,875 418,957 20 Year Amortization 3,234 443,802 25 Year Amortization 2,864 458,113 30 Year Amortization 2,630 467,184 35 Year Amortization 2,473 473,286 40 Year Amortization 2,363 477,556
 490k at 6% Monthly Payment Balloon Payment 5 Year Amortization 9,473 213,740 10 Year Amortization 5,440 372,385 15 Year Amortization 4,135 423,723 20 Year Amortization 3,511 448,284 25 Year Amortization 3,157 462,186 30 Year Amortization 2,938 470,812 35 Year Amortization 2,794 476,471 40 Year Amortization 2,696 480,321
 490k at 7% Monthly Payment Balloon Payment 5 Year Amortization 9,703 216,708 10 Year Amortization 5,689 376,959 15 Year Amortization 4,404 428,271 20 Year Amortization 3,799 452,440 25 Year Amortization 3,463 465,847 30 Year Amortization 3,260 473,962 35 Year Amortization 3,130 479,137 40 Year Amortization 3,045 482,546