## What is a balloon mortgage?

Wikipedia defines a balloon mortgage as a loan "which does not fully amortize over the term of the note, thus leaving a balance due at maturity. The final payment is called a balloon payment because of its large size."

**This mortgage calculator with balloon provision will not only calculate the final balloon payment; it will also help you structure a mortgage to meet your specific needs.**

Check out these additional loan scenarios:

- Want to know what periodic payment will result in a specific final balloon amount? This calculator will calculate the regular, periodic mortgage payment.
- Or do you have a budget for both the periodic payment, and the balloon payment and you want to know how much you can borrow? This calculator can use your inputs to calculate the mortgage loan amount.
- Or do you need to set the regular payment to an agreed-upon but nontraditional amount before calculating the balloon? This calculator is capable of doing that calculation as well.
- Or do you want to calculate the periodic payment using, say, a 30-year term while the balloon gets computed using a 7-year term? Yup, you can do that calculation too.

See below

#### Info...

Copy and paste this URL to save your inputs to share them with others.

Click "Calc", "Clear", "Preview." or "Schedule" to update the URL. Paste it into any browser to reload.

## Using the Balloon Mortgage Calculator

As mentioned, a balloon mortgage is a loan that has its regular periodic payment calculated using one term (for example, 30 years) when the last payment is due sooner (for example, in 5 years).

**Note: If you do not know the regular mortgage payment amount, we must calculate it before calculating the final balloon amount.**

Example: Assume you are considering a mortgage for $395,500. You want the monthly payment calculated based on a 30-year loan, but you'll pay the balance after 60 months.

### Two steps to calculate monthly mortgage payments and a final balloon payment

**Step 1:** Enter:

Mortgage Loan Amount?: | $395,500.00 |

Mortgage Interest Rate?: | 3.5000% |

Balloon Due at Payment? (#): | 360 |

Mortgage Payment (P&I)?: | $0.00 |

Final Balloon Payment (can be 0)?: | $0.00 |

When you enter "0" for both "Mortgage Payment (P&I)" and "Final Balloon Payment," you are setting up the calculator to calculate a level payment for the entire term of the loan. That is the final payment will not be a balloon payment.

Click "Calc" and here are the results. $1775 is the "regular" payment amount for a 30-year loan. (The final payment gets rounded by slightly more than $1.00 or less than $0.005 per each regular payment.)

Mortgage Payment (P&I)?: | $1,775.97 |

Final Balloon Payment (can be 0)?: | $1,776.99 |

**Step 2:** Now to calculate the balloon payment amount, with the balloon due after five years, set the calculator as follows:

Mortgage Loan Amount?: | $395,500.00 |

Mortgage Interest Rate?: | 3.5000% |

Balloon Due at Payment? (#): | 60 |

Mortgage Payment (P&I)?: | $1,775.97 |

Final Balloon Payment (can be 0)?: | $0.00 |

Click "Calc," and this is the balloon that will be due in the final month of the fifth year if the debtor makes payments based on an assumed term of 30 years:

Final Balloon Payment (can be 0)?: | $356,528.01 |

If that's what you wanted to know - what the balloon payment amount will be for a loan, then you're finished.

But with this calculator, it's possible to do more. **You can structure a loan just the way you want it.**

### Other mortgage scenarios:

Example 2: Pick the balloon payment amount and calculate the mortgage payment:

Mortgage Loan Amount?: | $395,500.00 |

Mortgage Interest Rate?: | 3.5000% |

Balloon Due at Payment? (#): | 60 |

Mortgage Payment (P&I)?: | $0.00 |

Final Balloon Payment (can be 0)?: | $350,000.00 |

Result: | |

Mortgage Payment (P&I)?: | $1,877.23 |

Example 3: Pick an affordable periodic payment:

Mortgage Loan Amount?: | $395,500.00 |

Mortgage Interest Rate?: | 3.5000% |

Balloon Due at Payment? (#): | 60 |

Mortgage Payment (P&I)?: | $2,200.00 |

Final Balloon Payment (can be 0)?: | $0.00 |

Result: | |

Final Balloon Payment (can be 0)?: | $329,192.44 |

Example 4: Pick your payments and calculate the mortgage amount:

Mortgage Loan Amount?: | $0.00 |

Mortgage Interest Rate?: | 3.5000% |

Balloon Due at Payment? (#): | 60 |

Mortgage Payment (P&I)?: | $2,000.00 |

Final Balloon Payment (can be 0)?: | $350,000.00 |

Result: | |

Mortgage Loan Amount?: | $402,145.44 |

### Mortgage with Balloon Payment Help

You can calculate one of any five possible unknowns with this calculator. Just enter a zero for one of the following: "mortgage loan amount," "annual rate," "balloon due at payment number," "periodic payment" or "final/balloon payment."

If you are solving for the balloon payment, and the periodic payment decreases as well, that indicates the periodic payment was larger than necessary given the other loan details.

## Comments, suggestions & questions welcomed...