This is a wake up call I needed and not to mention, to do more homework on our options and on myself!

It's simply calculated and charged (at 12%) for a shorter period of time (6 months).You asked that it be explained in detail, so I hope this isn't toooo detailed, but I'm going to give you the calculator punches on a simple 4-function calculator:(amount borrowed) X (interest rate) = (annual interest**)(annual interest**) divided by (12) = (monthly interest)(monthly interest) times (number of months you owe the money) = total dollars of interest paid**annual interest expressed as a dollar figure for total one year's interest at that rate*APR: I think you might just want to think in terms of the interest rate, instead of saying APR (annual percentage rate) as the APR is a combined rate that includes the interest rate being charged, and all other "finance charges" such as up front lender fees, prepaid interest, etc.The APR is required under TILA, the Truth in Lending Act, and only applies to consumer loans, so would not apply to a business loan, but your business banker might just be in the habit of using that term anyway.Dennis, are you still awake?

And they lay awake at night stressing over getting a contract and not being able to assign it.  

Ok, gotta go, hubbys awake and its been so long I have been wanting to do this I don't even talk about it to hubby anymore.

Luckily it wasn't a crazy amount but served as a wake up call. 

As my girlfriend and I sat there thinking to ourselves (at 3am, now wide awake after the neighbors had a physical fight and shook the house for a solid half hour) "there's gotta be a better way", I took to Google and started my Real Estate Research. 

The reps need a wake up call anyway.  

the banks have a pretty goofy process at this point and need a wake up call, or instead of trying to make some money back on a property, thy will begin to not be in the negative so much.

Maybe somebody else can give their input (those of us who are still awake!)

The answer is really whatever the least amount is that doesn't keep you awake at night.