Balloon Mortgage

Balloon mortgage is a mortgage or home loan when you buy a house you can get a free balloon. Naaa, it's not what it means.

When you buy a house by means of loan, you will need to pay some amount of regular payments every week, two weeks, or month. In balloon mortgage, you will get a lower interest compared to conventional mortgage and there is one point of time when you will have to pay the rest of your loan after several payments or years you have paid. And, this is going to be a huge payment considering the rest of your loan is actually the ending balance of the loan principal.

It's good if you want to sell your house after the balloon payment, considering that your house price is much higher than the principal and your regular payments are covered by a higher rent payments from your tenants. That's a logical thought when you invest something with nothing.

Compute the payment amount for a simple loan with an optional balloon payment, using monthly interest compounding and monthly payments. Enter the loan amount, number of monthly payments, date the balloon payment will occur, and the nominal annual rate. The payment calculator computes the payment amount for you. The balloon is assumed to be due one month after the last regular payment. Calculate your balloon mortgage payment.


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