Balloon Mortgage Calculator
Balloon mortgage is a type of mortgage where your monthly payment is calculated based on a conventional mortgage schedule (typically a 30-year mortgage). The difference is that you will make one lump-sum payment at a pre-specified time (typically 5 or 7 years).
The key advantage of a balloon mortgage is that it carries a lower rate than a traditional mortgage, making monthly payments more affordable.
The key disadvantage of the balloon mortgage is the balloon payment due, so the borrower usually has to refinance or otherwise find a way to pay the balloon payment. Balloon mortgages are best for people who are pretty sure they won't live in the current house by the time the balloon payment is due.
Use this balloon mortgage calculator to find the monthly payment required for a balloon mortgage, and the balloon payment due at the end of the mortgage.
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Mortgage Amount: | |
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Balloon Payment Due At The End Of: | Years |
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Amortization Schedule: | Years |
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Interest Rate: | % |
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