### Balloon Payment Mortgage

Balloon Payments is an unusually large payment due at the end of a mortgage or loan. Since the payments are not spread out, this large sum is the final repayment to the lender. Holding back most of a debt and paying it only towards the end of the agreement makes both those last payments and the total amount repaid much larger. The name comes from the fact that the debt becomes inflated like a balloon as a result of the compound interest accumulating on the large sum.

### Balloon Payment Loans – Are They Advantageous to Your Financial Planning

Balloon Payments are a great way to reduce your monthly payment outgo, when you are expecting a large some of money to receive on a future date. This may be from an expected tax refund, or some inherited property or something like that, which you are scheduled to receive in future. In such situations, you can close your loan by paying the outstanding loan amount once you receive that money. In Balloon Payments Mortgages, the loan amount corresponding to the balloon payments is not amortized. So the monthly outgo reduces to a large extent and makes you qualify for a bigger amount even if your current monthly incomes are less. While looking great on the face, they are to be carefully handled. It is not uncommon for the people to falter on the balloon payments because of their large amounts. The expectations of receiving the money in future may not come true and this may lead to financial crisis forcing the borrower to sell off their property. This is specially true in the falling property markets.

### Balloon Payment Mortgage Calculator

Here we present you a versatile Balloon Payment Mortgage Calculator, which will calculate the final balloon payment required to make depending upon the various values entered by you. The details of the input and output fields are given at the bottom of this Balloon Payment Mortgage Calculator.

**Inputs Required to be Entered**

Following inputs are required to be entered to run this Balloon Loan Payment Calculator.

**Sale Price:**This is the sale price at which you are purchasing the property.**Down Payment:**Down Payment made by you from your own finances.**Interest Rate:**The agreed interest rate at the time of taking the loan.**Length of balloon Period:**Your final Balloon Payment will be due after this period.**Length of Amortized Interest:**The monthly payments are calculated based upon this period. This may be different from the length of the balloon period. The amortization is calculated for this duration.**Additional Principal:**The additional amount you may choose to pay.**Points:**The percentage of the loan amount you will have to pay to close this loan.**Other Closing Costs**: Any other payments you may have to make to close this loan.

.

**Output Results Calculated by Balloon Loan Payment Calculator**

Following results will be given after calculations.

**Monthly Payments:**The amount, which you need to pay monthly.**Balloon Payment Amount:**This is the target amount, which you need to pay at the end of the ‘Length of the Balloon Period’.**Loan Amount:**This is calculated based upon the values entered by you in ‘Sale Price’, ‘Down Payment’, ‘Points’ and ‘Other Closing Costs’ fields earlier.**Total Interest:**This is the amount you will pay in the entire ‘Length of the Loan’.**Total Paid:**Total amount paid in ‘Length of the Loan’.**Payoff Time:**This is the time in which your total loan will be paid off.

Besides these regular output fields, there are some more additional output field, which become visible after you click the down arrow key. These are explained below.

**Number of Payments:**Total number of payments you will be making to serve your loan.**Annual Cost:**The amount required to be paid each year.**Points Amount:**The points percentage applied to the amount you borrow gives the dollar amount the loan points will cost.**Total Property Cost:**Total cost of the property.