What Is It?
There are two common types of real estate loans - amortizing loans and interest-only loans.
Amortizing loans are paid down over time with principal and interest payments. Fully amortizing loans are paid in full over the course of their loan term. Balloon loans have an amortization period that is longer than their term, and have a balloon payment due when their term ends.
Interest-only loans have interest-only payments and are due in full at the end of their term.