Mortgage Calculators

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.

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Cindy Osborne, Broker/ Owner RE/MAX Preferred Realty 208 South Main Street Statesboro, GA 30458 Cell: 912-601-6000 Email: cindy@cindySOLDit.com Cindy specializes in representing her clients in the purchase and sale of single-family residences, land and income property within the cities of Statesboro, Brooklet, Metter and Portal. She is also very familiar with Georgia Southern University in Statesboro having helped parents and investors buy and sell homes and condo's on and around the campus.She keeps current on all transactions in these areas, and is also very knowledgeable about the local schools. She carries a brokers license which means she is held to a higher standard of service and professionalism. She also has an ERS designation as a Relocation Specialist and understands this better than most having lived in more than 7 states in her adult life. She has the expertise and experience to work for you. You will enjoy her abundant energy and excitement about helping you call Georgia home. She really understands the work it takes to find the right home and will be there to walk you thru every step. She knows her job is not complete until you are totally satisfied and at ease with your transaction. Give Cindy a call today!!! 912-601-6000 www.cindySOLDit.com is brought to you by Cindy Osborne NUMBER1EXPERT in real estate for Statesboro and Brooklet, Georgia Read Cindy Osborne's Privacy Guarantee, Terms of Service, and Free & Without Obligation Pledge

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