OK, I have another one:

Trying to calculating interest into the loan amount (Hard money), I can't figure how to do it correctly.

Say I take a $1,000 loan at 15% annually, for 2 years.

8% to be paid monthly, and (7*2)% to be paid as a balloon after 2 years.

Here is the question: I want to add the monthly 8% to the $1,000 upfront and escrow it, so that I don't need to make any payments on the loan over the life of the loan, only the balloon at the end.

But I can't just add $1000*8%*2 to the 1000, as the loan will charge 15% on the additional 8% as well...

Thanks!