Welcome > Resources > Mortgage Calculators > Balloon Mortgages ...

Are Balloon Mortgages For You?

A balloon mortgage can be an excellent option for many home buyers. A balloon mortgage is usually rather short, with a term of five to seven years, but the payment is based on a term of 30 years. They often have a lower interest rate, and can be easier to qualify for than a traditional 30 year fixed mortgage. There is, however, a risk to consider. At the end of your loan term you will need to pay off your outstanding balance. This usually means you must refinance, sell your home or convert the balloon mortgage to a traditional mortgage at the current interest rates.

Definitions

Mortgage amount

Original or expected balance for your mortgage.

Interest rate

Annual interest rate for this mortgage.

Term in years

The number of years over which you will repay this loan. The most common balloon mortgage terms are 5 years and 7 years. After the mortgage term is complete, you will then need to refinance or pay off the remaining balance.

Monthly payment

Monthly principal and interest payment (PI). The monthly payment is calculated using a 30 year term.

Total payments

Total of all monthly payments over the term of the balloon mortgage. This total payment amount assumes that there are no prepayments of principal.

Total interest

Total of all interest paid over the term of the balloon mortgage. This total interest amount assumes that there are no prepayments of principal.

Prepayment type

The frequency of prepayment. The options are: none, monthly, yearly, and one-time payment.

Prepayment amount

Amount that will be prepaid on your mortgage. This amount will be applied to the mortgage principal balance, based on the prepayment type.

Start with payment

This is the payment number that your prepayments will begin with. For a one time payment, this is the payment number that the single prepayment will be included in. All prepayments of principal are assumed to be received by your lender in time to be included in the following month's interest calculation.

Savings

Total amount of interest you will save by prepaying your mortgage.

The mortgage calculators are provided by KJE Computer Solutions, LLC and made available to NUMBER1EXPERT as self-help tools for your independent use and are not intended to provide investment advice. We can't guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

"A model of how the Internet can facilitate the process of deciding where to send your children to school" - America's Best School Profiles by The Heritage Foundation Ohio Public, Private and Charter Schools: Compare them using these top-rated, comprehensive reports.   Schools in Columbus, Westerville and Lewis Center

Cosmetic Improvements >Cosmetic Repairs The better your home in looks while it is on the market, the more likely it is to sell quickly, and for the best price. When you have a listing appointment with a real estate agent, the agent will provide a detailed market analysis along with the advantages of listing with their company. He or she will then go through your home with you and make suggestions about cosmetic repairs that will help to present your home at its best. The real estate agent's recommendations can make some sellers uncomfortable and a little defensive because they are reminders of all the "little" projects they have postponed. Real estate agent's occasionally encounter a homeowner who "has it all together", but such people are rare! Most sellers need suggestions about repairs that will make their home show well, and providing these ideas is an important part of a real estate agent's job. See All Tips In The "Cosmetic Improvements" Category > See Complete Library Of Hundreds Of Tips In 30+ Categories >

Q  Which home is considered the ultimate in California craftsman-style architecture? A  Located in Pasadena, the Gamble House, built in 1908 by Charles and Henry Greene, is a National Historic Home open to visitors. See More Real Estate Trivia >

DeLena Ciamacco RE/MAX Connections, Realtors 4531 E. Walnut Street Westerville, OH. 43081 Toll Free : (877) 693-SOLD (7653) Office: 614-342-TEAM (8326) Fax: 614-882-6752 Email: delena@delena.com DeLena began to sell Real Estate with a local Conventional Brokerage and soon decided that in order to grow she would need to affiliate herself with a much larger, International Company. She chose RE/MAX and that is when her career as a Realtor began to soar. After just her second year with RE/MAX (1993) DeLena ranked #5 in all of Ohio among RE/MAX Realtors. In addition to her numerous local recognizable awards with the Columbus Board and Ohio Association of Realtors, she was inducted into the RE/MAX International "Hall of Fame" and "Lifetime Achievement" (RE/MAX's highest achievement awards) as the youngest Realtor in RE/MAX History to attain this level of sales. She has been the recipient of RE/MAX's highest awards since her first full year with RE/MAX. She has been recognized in "Who's Who" in Residential Real Estate in North America for 1994, 1995, & 1996, and articles have been written about her in Ohio Realtor Magazine, In Contract Magazine, Columbus Executive Woman's magazine, Business First and Buon Giorno magazine, to name just a few. She has contributed her time as a Speaker on numerous "Top Producer" panels in 1993-2002 (ytd). In 2002 DeLena was nominated for the Ernst & Young Entrepreneur of The Year. www.DeLena.com is brought to you by DeLena Ciamacco NUMBER1EXPERT™ in real estate for Columbus, Westerville and Lewis Center, Ohio Read DeLena Ciamacco's Privacy Guarantee, Terms of Service, and Free & Without Obligation Pledge

NUMBER1EXPERT™
© Best Image Marketing and/or its clients.
All rights reserved. All information deemed reliable but not guaranteed.