Seller finance

[Toan Le]

I am working on the deal of multi family .It's my first deal on multi family . The asking price is $350,000 and seller will cary back $50,000 with 5% interest and 3 years balloon .Can anyone help me calculate the payment I have to pay every month for that amount alone? And is it worth to take that offer? Any advice will be appreciated . Thanks . Lee.

[Jason V. Henderson]

It depends on how the rate is amortized. Assuming it is at 30 years you would be paying around $270/month for 3 years and then on the third year you would owe the entire remaining balance. You can play around with an online mortgage calculator to find out the payments, but remember the balloon payment is when the balance is due, not the basis for the monthly payments.