Convertible Balloon Mortgage Calculator
Definition:
Balloon Mortgages. A balloon mortgage has a fixed interest rate and fixed monthly payment, but after a fixed period of time, such as 5 years, the entire balance of the loan becomes due at once. As a practical matter, the homeowner is unlikely to have enough cash to pay off the entire loan balance after 5 years, in which case a new mortgage would have to be arranged. If a mortgage can not be arranged, the homeownder is liable for the balance and may lose the house. Balloon mortgages are usually a last resort for those who can’t qualify for a standard fixed or adjustable rate mortgage.
The following calculator will assist you in determining if a balloon mortgage
is right for you. Change the sample data below with your data and hit Calculate!
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