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?
Simple interest 4% Per annum
Principal and interest payable in monthly payments of $750 or more
Loan term- 36 Month.
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.
In other words...
Can somebody calc what the balloon would be in the end of the 3 yrs, or refer me to a calculator that use fixed monthly payments please?
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.
Thx for the input Jr. what system do you use to re-amortize? I'm looking for a dollar amount or an online calculator that will result a hard number.