#### \$8,500,000 Commercial Loan With Balloon Payment at 3 Years

Monthly payment and balloon payment for a \$8,500,000 commercial loan after 3 years
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Determine the monthly payment and balloon payment for a \$8,500,000 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 \$8,500,000 loan with 5% interest and amortization set to interest only would have a payment of 35,417/month. However, the loan the remaining balance of 8,500,000 would need to be paid off or refinanced after 3 years.
Payment and balloon payment chart for a \$8,500,000 commercial loan with a 3 year loan term.
 \$8,500,000 at 4% Monthly Payment Balloon Payment 5 Year Amortization 156,540 3,604,852 10 Year Amortization 86,058 6,295,968 15 Year Amortization 62,873 7,181,203 20 Year Amortization 51,508 7,615,142 25 Year Amortization 44,866 7,868,752 30 Year Amortization 40,580 8,032,392 35 Year Amortization 37,636 8,144,815 40 Year Amortization 35,525 8,225,420
 \$8,500,000 at 5% Monthly Payment Balloon Payment 5 Year Amortization 160,405 3,656,266 10 Year Amortization 90,156 6,378,680 15 Year Amortization 67,217 7,267,613 20 Year Amortization 56,096 7,698,598 25 Year Amortization 49,690 7,946,855 30 Year Amortization 45,630 8,104,206 35 Year Amortization 42,898 8,210,056 40 Year Amortization 40,987 8,284,142
 \$8,500,000 at 6% Monthly Payment Balloon Payment 5 Year Amortization 164,329 3,707,729 10 Year Amortization 94,367 6,459,737 15 Year Amortization 71,728 7,350,291 20 Year Amortization 60,897 7,776,348 25 Year Amortization 54,766 8,017,518 30 Year Amortization 50,962 8,167,146 35 Year Amortization 48,466 8,265,316 40 Year Amortization 46,768 8,332,107
 \$8,500,000 at 7% Monthly Payment Balloon Payment 5 Year Amortization 168,310 3,759,225 10 Year Amortization 98,692 6,539,078 15 Year Amortization 76,400 7,429,192 20 Year Amortization 65,900 7,848,458 25 Year Amortization 60,076 8,081,018 30 Year Amortization 56,551 8,221,792 35 Year Amortization 54,303 8,311,552 40 Year Amortization 52,822 8,370,693