Loan Costs Amortization

[Burke]

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

[JohnH]

I'd use 5 years, because it's really a 5-year loan.

[FEDUKE404]

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

[Ross]

Five years.

[Burke]

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.