Greetings, I just came across some information and it confused everything I knew about loans.

Example: Lender makes a $36,000 loan at 15% interest only payments for 5 years.

The monthy payments would normally be about $857 (average interest each month would be about $257)

Question: Does that mean the borrower is only paying $257 per month and the remaining balance in a lump sum? Or would the payments be the $857/m?

Thanks.

Why are you calling that an interest only payment?

The numbers do not make sense unless there is some partial amortization with a lump sum at the end.

it's looks like a normal mortgage,
interest only loans we r paying only interests with different options..