A balloon mortgage is usually rather short, with a term of five to seven years, but the payment is based on a term of 30 years. They often have a lower interest rate, and can be easier to qualify for than a traditional 30 year fixed mortgage. At the end of your loan term you will need to pay off your outstanding balance. This usually means you must refinance, sell your home or convert the balloon mortgage to a traditional mortgage at the current interest rates.
Original or expected balance for your mortgage.
Annual interest rate for this mortgage.
Term in years
The number of years over which you will repay this loan. The most common balloon mortgage terms are 5 years and 7 years.
Monthly principal and interest payment (PI). The monthly payment is calculated using a 30 year term.
Total of all monthly payments over the term of the balloon mortgage. This total payment amount assumes that there are no prepayments of principal.
Total of all interest paid over the term of the balloon mortgage. This total interest amount assumes that there are no prepayments of principal.
The frequency of prepayment.
Amount that will be prepaid on your mortgage. This amount will be applied to the mortgage principal balance, based on the prepayment type.
Start with payment
This is the payment number that your prepayments will begin with. For a one time payment, this is the payment number that the single prepayment will be included in. All prepayments of principal are assumed to be received by your lender in time to be included in the following month's interest calculation.
Total amount of interest you will save by prepaying your mortgage.
Information and interactive calculators are made available to you as self-help tools for your independent use. We can not and do not guarantee their accuracy or their applicability to your circumstances. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.
- Loan Payment
- Fixed Mortgage Loan
- Adjustable Rate Mortgage Loan
- Balloon Mortgage
- Home Equity Line of Credit
- Refinance Breakeven
- Rent vs. Buy
- Home Budget
- Checkbook Balancer
- Certificate of Deposit
- Retirement Planner
- Retirement Income
- College Savings
- Debt Consolidation
- Credit Card Optimizer
- Auto Rebate vs. Low Interest Financing