A Balloon Mortgage Calculator will Determine If This Loan Is Right For You

A balloon mortgage allows you to take out a very short term mortgage loan (5 to 7 years and amortized over 30 years) in which at the end of the loan term the balance must be somehow paid off!

A balloon mortgage forces you to sell your home or refinance into another loan!

"Although... some customer friendly lenders are allowing you to continue the same loan with your interest rate adjusted to whatever the going market rates are at the time!"

Your Initial interest rate will be slightly lower than prevailing rates on a balloon mortgage.

You will have a lower payment. This is what makes it appealing! 

If your time frame on living at your home is within 5 to 7 years, then this loan is a good option!

Payment Options
There are several prepayment options which you can exercise and a balloon mortgage calculator can help you determine which of these prepayment options may be right for you. 

• No payment at all. This is the most expensive type. By choosing this option your whole loan amount will be due at the end of your term.  
• Yearly payments over the term of your loan. These will be five to seven payments total, one for each year you have the loan.  
• Monthly payments over the term of your loan. These will be smaller but more frequent payments. They may be easiest for those who have trouble saving money.

• mortgage amount  
• loan term  
• interest rate

The balloon mortgage calculator will then take your payment amount and how many expected payments to determine your interest rate savings.

This will give you your end of loan balloon payment!