Owner finance amortization

4 Replies

Hi, I have this note, and I'm trying to find out what the Balloon/Final payment would be in the end of 3 yrs term?

Also if the borrower decide to "over pay" the $750 a Month, how will I recalculate it?

total:$35,000

Simple interest 4% Per annum

Principal and interest payable in monthly payments of $750 or more

Loan term- 36 Month.

Thank you.

There's not enough info. to answer your question.  Do you have a servicing company that has been handling the payments?  If so, they would know how to answer your questions.  If not, I have a recommendation: The Note Servicing Center, in California, but national, 559-665-3456.

Anytime they overpay you have to re-amortize in your system the "balloon" in month 36 will be whatever the balance is after month 35's payment. This sounds like a borrower who will pay off early, I'd be shocked if this note went to term.