Loan Amortization, Loan Term, and Balloon Payments in Commercial Real Estate Explained

Loan Amortization, Loan Term, and Balloon Payments in Commercial Real Estate Explained // In commercial real estate investing, commercial real estate loans end up being pretty different than your standard, 30-year fixed rate mortgage on a home or rental property. So, with that said, what's the difference between a loan amortization period and the loan term, and what are you likely to see for each in a commercial real estate deal? And, on top of that, how does a balloon payment fit into this, and how is that calculated (and paid off) once a loan term comes to a close, even if the loan amortization period isn't complete yet?

If you're just breaking into commercial real estate investing and want to brush up on your real estate finance, definitely check out this video.

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