Commercial Loan 15 year amortization with a 5 year balloon

[Colte Utley]

Can anyone help me with my situation? I have had a a commercial loan on one of my properties since 2017. I was told that I was getting a 15 year amortization with a 5 year balloon. The balloon payment is due in the next few days and I am confused as to why the principal that is left is so high. I financed 53k and the balance is 45k at this moment. I have ran several 15 year amortization calculators and they all show the balance should be around 40k. The payment was $365 per month at 5.25% interest. What is it that I do not understand correctly? Are commercial loans structured differently than traditional loans when it comes to the amortization schedule?

I remember asking a lot of questions when first getting started because everything was new. I was told that the loan could be reissued at the end of the 5 years and the amortization schedule would pick up where we left off. That all sounds great until I realize this loan will not be paid off in 15 years. Any advise is welcome!