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.

Working With An Agent >An Artful Compromise People who try to sell their own homes begin to appreciate the expertise of professional real estate agents as soon as their first offer comes in. They want to sell their home, and they have found prospects who want to buy. But what happens next? When the negotiating process begins, things can get "sticky". First, there are personalities involved, and real estate transactions can be stressful and challenging. The buyers may seem unreasonable if they make an offer that is considerably less than the sellers are willing to accept. At that point the buyers may become offended by the sellers' attitude. When professional real estate agents are involved, the process is much less adversarial. The two parties see very little of each other until the rough edges have been smoothed out and there has been a meeting of the minds. Good real estate agents know how to keep personalities out of the transaction and to help both sides reach a mutually agreeable compromise. See All Tips In The "Working With An Agent" Category > See Complete Library Of Hundreds Of Tips In 30+ Categories >

Q  Who received the largest land grant ever given to an English subject for only two beaver skins per year? A  William Penn, the Quaker leader, received Pennsylvania and Delaware to settle a debt owed his father by King Charles II. See More Real Estate Trivia >

The Rosemary Hofer Group Hidden Creek Realty RR2, Box 57A Buckeye, WV 24924 Broker: Michael Briel Phone: 304-799-2606 Fax: 304-799-2607 Email: rhofer@NUMBER1EXPERT.com Rosemary Hofer is associated with Hidden Creek Realty. Prior to moving to West Virginia she lived in Virginia where she worked for a RE/MAX company. She was the #1 RE/MAX agent in Virginia and received the RE/MAX Hall of Fame award in 1999. Her clients range from first time buyers looking for $60,000 condominiums to well-established executives shopping for million dollar estates. Every client receives the attention to detail that is necessary for a smooth transaction. Rosemary's goal is to exceed all of her clients expectations to such an extent that they will make her their Real Estate Consultant For Life! Call or email her today! www.rosemaryhofer.com is brought to you by The Rosemary Hofer Group NUMBER1EXPERT™ in real estate for Pocahontas County, Snowshoe and Greenbrier County, West Virginia Read The Rosemary Hofer Group'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.