A Balloon Mortgage Calculator will Determine If
This Loan Is Right For You
A Balloon Mortgage Calculator will show you the many options
of the balloon mortgage program and how it works!
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
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
If your time frame on living at your home is within
5 to 7 years, then this loan is a good option!
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.
How Does a Balloon Mortgage Calculator work?
- 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
- Yearly payments over the term of your loan. These will be five
to seven payments total, one for each year you have the
- 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.
You need the following to calculate your numbers on a balloon
These items, when inserted into your calculator, will determine
your monthly and balloon payment.
- 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