Money Blog - Turning one note into another, part 3

This week we’ll continue with the scenario from Part 2.

To recap, I've bought a note for $20,000.  The terms of the note are as follows:

• 360-month amortization (48 months have passed)
• 7% interest
• $78,500 original balance, ($74,947.52 current balance)
• $522.26 monthly payment
• Though the note amortizes over 360 months, it has a 5-year balloon, at which point $73,893.30 will still be owed

Since the borrower doesn't want to pay the balloon and I like receiving payments, I'm going to extend the note and change the terms when the balloon would have come due.

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