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Consider a $5,000,000, 9%, CPM with monthly payments. What is the regular monthly payment and the balloon payment amounts in each of the following cases:
Consider a $5,000,000, 9%, CPM with monthly payments. What is the regular monthly payment and the balloon payment amounts in each of the following cases:
(a) Fully-amortizing, 30-year loan
(b) 30-year amortization, 10-year balloon
(c) 15-year amortization, 10-year balloon
(d) What is the major disadvantage, and advantage, of the 15-year amortization-rate 10-year loan in (c) as compared to the 30-year amortization-rate 10-year loan in (b)?
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