Help with interest only calculations

[Carol Donaldson]

Hi,    Could someone help me with how to deterimine a calculation for an investment property?   I'm looking for the formula for a 30% down, 10% interest only for 3 years, on a 5 year note.  

Any help would be appreciated.

-Carol

[Frank Jiang]

Well your monthly payment for the first 3 years is 10%/12 times the loan balance so that part is easy to figure out.

The other part depends on how the loan is amortized in the remainder of its duration, whether it's regularly amortized or ballooned or whatever.