Chapter 16: Commercial mortgage types and decisions

Understand why a partially amortized balloon mortgage exists Know how to calculate the monthly payment and the balloon payment at the maturity of a commercial mortgage Know how an interest rate hike affects the value of a mortgage with a balloon payment and the value of a fully amortized mortgage Know the common restrictions on prepayment and the loan types with and without prepayment penalties Know how to calculate the internal rate of return (IRR) of a refinancing project