How to Use Our Balloon Mortgage Calculator

Our balloon mortgage calculator helps you understand the payments and final balloon payment for balloon loans. Simply enter your loan details to get instant results:

Loan Amount: Enter the total amount you're borrowing
Interest Rate: Input your annual interest rate (APR)
Balloon Term: Choose when the balloon payment is due (5, 7, 10 years, etc.)
Amortization Period: Enter the full amortization period (typically 30 years)
Start Date: Select when your payments begin

What You'll Get

Monthly payment amount during the balloon term
Final balloon payment amount
Total interest paid during the balloon term
Remaining principal balance at balloon maturity
Payment schedule showing principal and interest breakdown

Understanding Balloon Mortgages

A balloon mortgage is a type of loan that has a large final payment (balloon payment) at the end of the loan term. The monthly payments are typically calculated as if the loan will be paid off over a longer period (like 30 years), but the loan actually comes due much sooner (like 5 or 7 years).

Key Features:

Lower Monthly Payments: Payments are calculated over a longer amortization period
Large Final Payment: The remaining balance is due at the end of the balloon term
Short-Term Commitment: Typically 5, 7, or 10 years
Refinancing Required: You'll need to refinance or pay off the balloon payment

Benefits of Balloon Mortgages

Lower Monthly Payments: More affordable than traditional mortgages
Flexibility: Good for those planning to sell or refinance
Investment Properties: Popular for real estate investors
Short-Term Ownership: Ideal if you plan to move soon

Risks of Balloon Mortgages

Large Final Payment: Must pay the entire remaining balance
Refinancing Risk: Interest rates may be higher when you refinance
Credit Risk: May not qualify for refinancing
Market Risk: Property values may decrease

Frequently Asked Questions

What happens when the balloon payment is due?

You have several options: pay the full amount, refinance the loan, or sell the property. Most people choose to refinance.

Can I pay off a balloon mortgage early?

Yes, you can make extra payments or pay off the entire balance before the balloon payment is due.

Are balloon mortgages still available?

Balloon mortgages are less common than they used to be, but some lenders still offer them, especially for investment properties.

What's the difference between a balloon mortgage and an interest-only loan?

Balloon mortgages have monthly payments that include both principal and interest, while interest-only loans only require interest payments.

Year	Payment	Principal	Interest	Balance
1	$1,517	$217	$1,300	$239,783
1	$1,517	$230	$1,287	$237,317
2	$1,517	$246	$1,271	$234,455
3	$1,517	$262	$1,255	$231,401
4	$1,517	$280	$1,237	$228,143
5	$1,517	$298	$1,219	$224,666
6	$1,517	$318	$1,199	$220,957
7	$1,517	$340	$1,177	$216,999
8	$1,517	$362	$1,155	$212,776
9	$1,517	$387	$1,130	$208,270
10	$1,517	$413	$1,104	$203,463
11	$1,517	$440	$1,077	$198,333
12	$1,517	$470	$1,047	$192,860
13	$1,517	$501	$1,016	$187,021
14	$1,517	$535	$982	$180,790
15	$1,517	$571	$946	$174,142
16	$1,517	$609	$908	$167,049
17	$1,517	$650	$867	$159,481
18	$1,517	$693	$824	$151,405
19	$1,517	$740	$777	$142,790
20	$1,517	$789	$728	$133,597
21	$1,517	$842	$675	$123,788
22	$1,517	$898	$619	$113,323
23	$1,517	$958	$559	$102,156
24	$1,517	$1,023	$494	$90,242
25	$1,517	$1,091	$426	$77,530
26	$1,517	$1,164	$353	$63,967
27	$1,517	$1,242	$275	$49,495
28	$1,517	$1,325	$192	$34,054
29	$1,517	$1,414	$103	$17,579
30	$1,517	$1,509	$8	$0

Balloon Mortgage Calculator

Total Cost

Principal

Interest

Payment Breakdown