this is an interest only balloon loan over 24 months at a rate of 8 percent You see that the borrower still owes the lender $1DDUUDD after 24 months most oonsthetion loans to builders are this type. Suppose after 24 months, the builder asks extension of this loan tor another year. The builder continues to pay monme interest for the six month, thereafter he sleps payment for three months. and then tiles for chapter 11