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

Bargain Properties >Less Than Market Value Real estate ads are sprinkled with terminology that often puzzles consumers who don't have applied knowledge of housing industry lingo. Internet homebuyers find that information about properties is often presented in abbreviated form or unfamiliar language. Shedding a little light on some basic real estate terms may help you locate a home that is available at a very affordable price. 'MLS' refers to the Multiple Listing Service, which is the national database of listed homes for sale. Some real estate web sites allow homebuyers to preview local listings that appear on the MLS. If you see a real estate ad for a "FSBO", it means that the property is for sale by the owner, who is declining the services of a Realtor. A home listed "As-is" is being sold in its existing condition. A "bargain sale" home is priced at less than its market value, and a "fixer-upper" is priced low because it needs refurbishing. See All Tips In The "Bargain Properties" Category > See Complete Library Of Hundreds Of Tips In 30+ Categories >

Q  What high-profile rental property rents for $13,500 a month although the star hasn't lived there for over 20 years? A  Shirley MacLaine's name is still used to promote her Encino, CA, estate even though she hasn't lived there in years. See More Real Estate Trivia >

Donald Payne Vision Realty, Inc. 4608 North High Street Columbus, OH 43214 Office: 614-447-3175 Toll-free: 866-510-2223 Cell: 614-323-4348 Fax: 614-267-2258 DonaldPayne@VisionRealty.com Meet Donald A. Payne, Founder, Vision Realty. Don Payne is a devoted husband, father, son, friend, and volunteer. All of these life experiences make him uniquely qualified to have been the realtor of choice for home buyers and sellers since 1979. The key to Don’s success for more than 25 years has been his willingness to take the time to get to know his clients, and to understand how their housing situation can best help them meet their personal visions. Don has used his real estate expertise and relationship-building skills to help people in all walks of life realize their home ownership goals. He has reached out to single individuals, first-time homebuyers, new families, single parents, and well-established homeowners in a broad spectrum of pricing ranges, throughout their desired market areas. Don has a sincere passion for knowing that, at the end of the day, his strategy has been to provide his clients with a caring, concerned partner in helping them achieve their unique life visions. Whatever your housing vision may be, Don Payne can help! VisionRealty.com is brought to you by Donald Payne NUMBER1EXPERT™ in real estate for Columbus, Ohio Read Donald Payne'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.