Understanding financing - Home Equity Loan

[Adam Garza]

Could use some assistance with understanding financing:

I am looking to understand how a short term home equity loan would work...I recently went to the bank to ask about it, but want to understand the numbers. I own a rental property free and clear and am want to pull out 25,000 for repairs in order to flip it. 

Purchase price: 51,000

Looking to borrow: 25000

Months: 12 w/ balloon after 12 months 

Interest rate: 5.5%

I'm mostly interested in understanding how much my payment each month would be. Also, understanding principle vs interest and how that is calculated. I'd appreciate any help you guys could offer!

Thanks, 

Adam