What is the difference between loan term and amortization term

well, Jo, i have to say i'm not well-versed in commercial lending, but i'll give it a shot. i have to say that i don't have any friends to whom i'd lend money, and that doesn't mean i don't have friends. there's too much risk involved to get into a situation that a relationship might be severed all because of money.

anyway, after all that, i guess i would have to say i would anticipate a return of at least 7% and perhaps higher. without doing any homework, that's my beginning number in this scenario. frankly, with no down payment (you have no investment to lose) and no collateral to offer other than a signature, my mind immediately hops to double digits. 10-11-12 per cent might be more reasonable based on all the obvious risks involved. and your experience (did you manage?) isn't enough to alleviate any of those risks.

if i were a serious investor with lots of dough to pass along in the form of loans, i'd certainly need to get counsel with someone in the business or legal advice or something to assist me, and oh by the way, do you have a solid business plan? that probably should have been my first question - that's going to be a deal-breaker if it's insufficient.

by the way, do you know how difficult it is for people who own their own businesses to get money from anywhere these days? if this friend of yours is committed to helping you out, then you are seriously blessed.

Thank you very much for the information. Just to clearify this is what you meant, apart from the business plan? would you say this looks ok? :

(Loan to a friend)
amount: $150,000 Rate: 7% Term: 5yrs Amortization: 5yrs

(General Loan)
amount: $150,000 Rate: 10-12% Term: 5yrs Amortization: 5yrs

Thank you.
C.J.

P.S. Yes I have managed for two big name chain stores in the west coast and currently managing for a big chain store in the east coast.

again, i don't know the typical rates for a transaction such as yours, so 10% is a stab and nothing but. rates may truly be higher for such transactions, and i suspect they are. as for 7% for a friend, i suppose if that's equivalent to, or better than, your benefactor's usual rate of return on investments, then it's fair. the lender - no matter who it is - ought not to lose money here, of course.

a 30 year amortization all due and payable in 5 years.for a loan amount of 50,000 ineed the calculation for this loan

Welcome sladen,

You haven't mentioned the interest rate on your mortgage. Nevertheless, you can use the given calculator in order to do the calculations:
http://www.mortgagefit.com/calculators/simple.html

on a ten year term w/interest only amortizaton for 5 years would the remaining 5 year apply to prin? This would be a realestate contract.

Hi Guest,

As far as I can understand, the payments for the remaining 5 years will be applied to the principal amount.

Thanks