amortization schedule with a balloon payment
Balloon mortgage calculator. Calculate balloon mortgage payments. A balloon mortgage can be an excellent option for many homebuyers. A balloon mortgage is usually rather short, with a term of 5 years to 7 years, but the payment is based on a term of 30 years. They often have a lower interest rate, and it can be easier to qualify for than a traditional 30-year-fixed mortgage. There is, however, a risk to consider. You can use Excel to set up an amortization schedule with a balloon payment. You can create a spreadsheet to compare the different effects of different loans so that you can take control of your finances by making the right financial decisions. This free online calculator will calculate the monthly payments, interest cost, and balloon payment for any combination of balloon loan terms. Plus, the calculator also includes an option for including a monthly prepayment amount, as well as an option for displaying an amortization schedule with the results. Balloon Mortgage Calculator. This balloon mortgage calculator allows you to vary both the term and interest rate then calculates the mortgage balance owed (balloon) at the end of the payment term. A balloon mortgage is usually rather short, with a term of 5 years to 7 years, but the payment is based on a term of 30 years. This blog will show you how to set up an amortization schedule with a balloon payment so that you can calculate the repayments and compare what the loan will actually cost you compared with other loans. You will need access to certain data to set up the worksheet. Calculate Amortization Schedule with Balloon Payment. Instructions: Enter the size of the loan, the annual interest rate, and select the payment interval. Next, enter the number of years the payment is based on, and the number of years or months prior to the balance coming due. The rate is the interest rate for the loan per payment period. In this case it is the monthly interest rate that applies to your loan. The NPer refers to the total number of payments for the loan. The PV represents the total loan amount and the FV in this case represents the balloon payment due at the end of the loan. A balloon loan is usually stated in a pre-balloon-years/payment-based-on-years format. For example, if a balloon loan's payment is based on a 30-year payback period, and the balance is due after 3 years, that would be considered a 3/30 balloon loan. The key characteristic of a balloon mortgage is a fixed loan term that is less than the amortization period creating a large, final, balloon payment. The key characteristic of an adjustable rate mortgage (ARM) is that the interest rate can adjust up or down during the life of a full amortization period. With Payment Schedule. Enter a 0 (zero) for one unknown value above. Balloon Loan Calculation Help. You can calculate one of any five possible unknowns with this calculator. Just enter a zero for one of the following: amount of loan, annual rate, balloon due at payment number, periodic payment or final balloon payment. Therefore, it is easy to solve for a periodic payment amount that will result in a particular balloon payment.
That you can calculate the repayments and compare what the loan will actually cost you compared with other loans. You will need access to certain data to set up the worksheet.