- Loan Amount: $237,500
- Rate: 9.50%
- Combined Appraisal Value: $475,000
- Term: 20 Year Amortization with a balloon in 10 years
- Lien Position: First
Our borrowers needed to refinance an owner carryback that was maturing. They wanted the lowest amortizing payments we offered but with the ability to make principal payments whenever they wanted. We were able to place them into a loan amortizing over 20 years with a balloon in 10 years. Rather than a prepayment penalty that would penalize any prepaid principal payments within the first 5 years, we instead used a minimum interest provision.