Run your numbers
What a balloon means
With a balloon, payments are set as if the loan ran for the full amortization, but the remaining balance comes due at the end of the shorter term.
Owners usually refinance or sell before the balloon date. Plan for that date from day one, because rates may be different when you refinance. ROI Funder does not place commercial mortgages; read commercial real estate loans explained for options.
Funding the costs around a property
Build-out, equipment and moving costs often fall outside the mortgage and can be funded separately.
See equipment financing and working capital for those costs.
Frequently asked questions
Is the balloon the same as a prepayment penalty?
No. The balloon is the balance due at maturity; a prepayment penalty is a charge for paying off early.
Does ROI Funder offer commercial mortgages?
No. ROI Funder places working capital, lines of credit, term loans, equipment financing, revenue-based financing and SBA loans.