Recent Calculations
A balloon loan can be an excellent option for many borrowers. A balloon loan is usually rather short, with a term of three to five years, but the payment is based on a term of up to 15 years. There is, however, a risk to consider. At the end of your loan term, you will need to pay off your outstanding balance. This usually means you must refinance your loan or convert the balloon loan to a traditional loan at the current interest rates.
Original or expected balance for your loan.
Annual interest rate for this loan.
The time period after which you must refinance or pay off your loan. The most common balloon loan terms are 3 years and 5 years. After the loan term is complete, you will then need to refinance or pay off the remaining balance.
The number of years over which your loan payment is calculated.
Monthly principal and interest payment (PI). The monthly payment is calculated using the number of payments in the selected amortization period.
Total of all monthly payments over the term of the balloon loan. This total payment amount assumes that there are no prepayments of principal.
Total of all interest paid over the term of the balloon loan. This total interest amount assumes that there are no prepayments of principal.