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Mini Perm Loan Calculator

Mini-perm loans bridge construction and long-term permanent financing. Short maturity (3-7 years), often with 1-2 years IO followed by amortization, and a balloon at maturity. This calculator computes the IO payment, the amortizing payment, and the balloon you'll need to refinance.

$
%

Amortizing monthly payment

$73,899

IO monthly payment

$62,500

Balloon at maturity

$9,541,398

Principal paid down over term

$458,602

First-year total payment

$750,000

How the math works

Mini-perm loans are 3-7 year CRE loans that bridge a construction loan and permanent financing. Often IO for 1-2 years followed by amortizing payment. At maturity, borrower refinances to long-term perm or extends. Popular when construction is stabilizing but not yet ready for agency or CMBS.

Balloon at maturity is what refinances. On lease-up deals, the balloon is sized assuming stabilized NOI drives the refinance — if lease-up stalls, the balloon can exceed refinanceable amount.

How to Use

  1. Enter loan amount and rate.
  2. Enter IO period in months and amortization years.
  3. Enter maturity in years.
  4. Read monthly payment and balloon at maturity.

Frequently Asked Questions

When to use mini-perm?

Stabilizing asset not yet ready for 10-year CMBS. Sponsor wants short-term hold before sale. Bridge-to-agency transitions. Credit-tenant shopping centers waiting for anchor to open.

Rate premium?

Mini-perm is usually 50-150 bps above agency/CMBS — shorter term, fewer exit options for lender. Balloon risk means lender prices for early refinance or default.

Balloon refinance risk?

Big. If rates rise or NOI under-performs, the refinance loan sizes smaller than the balloon — borrower must write a check or default. Mini-perm only makes sense with a clear stabilization path and conservative pro forma.

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