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    Loan Costs Amortization

    Business has loan with 20-Yr Amortization Schedule, balloon payment at end of 5 Yrs.
    Are loan costs amortized over 5 or 20 years?

    #2
    I'd use 5 years, because it's really a 5-year loan.
    "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

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      #3
      Weird

      So, in the first year is the client paying 20% of the loan costs (1/5) or 5% of the loan costs (1/20) ??

      Therein might lie the answer.....

      FE

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        #4
        Five years.

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          #5
          Originally posted by FEDUKE404 View Post
          So, in the first year is the client paying 20% of the loan costs (1/5) or 5% of the loan costs (1/20) ??Therein might lie the answer.....
          FE
          All loan costs are paid on closing in full.

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