Simple Mortgage Calculator

Balloon Mortgage Calculator

Lower payments now, a lump-sum later. See the trade-offs before you commit.

Balloon mortgages use a longer amortization (often 30 years) to compute monthly payments but require a large final payment after a shorter balloon term (e.g., 5 or 7 years). This calculator shows your monthly payment (P&I), estimated all-in payment (with taxes, insurance, HOA), total interest paid during the balloon period, and the final balloon amount due at maturity.
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Monthly payment breakdown

Balance and costs until balloon (yearly)

Amortization until balloon

Enter Loan & Payment Details

Results

Monthly P&I (level)
$2,270.09
Monthly payment (all-in est.)
$2,836.76
Final balloon payment
$328,564.98
Total interest (to balloon)
$114,770.58
Total paid incl. balloon
$464,770.58
Balloon term
5 years (60 months)

What Is a Balloon Mortgage?

A balloon mortgage offers lower monthly payments because they’re calculated over a longer amortization period (e.g., 30 years) while the actual loan ends early (e.g., in 5–7 years) with a large final payment. Some loans are interest-only during the term; most residential balloon loans use fully amortizing monthly payments.

How Our Balloon Calculator Works

We compute the monthly principal & interest using your amortization period, then generate a schedule for only the balloon term. The remaining balance at maturity is the balloon payment. You can add extra principal (monthly or one-time) to see how prepayments reduce your balloon amount.

Disclaimer: Estimates only. Lender terms, fees, and taxes vary.

Calculator Inputs Explained

  • Loan amount: Amount borrowed (after down payment).
  • APR: Annual interest rate.
  • Balloon term (years): When the lump sum is due.
  • Amortization (years): Used to compute monthly P&I.
  • Taxes, insurance, HOA: Optional for all-in payment.
  • Extra principal: Monthly and/or one-time prepayment.

Understanding Your Results

You’ll see your monthly P&I, estimated all-in payment, balloon payment, total interest during the term, and a schedule for each month up to maturity. Charts show your payment mix and balance path over time.

Example Calculation

With a $350,000 loan at 6.75% APR, 5-year balloon, and 30-year amortization, monthly P&I reflects a 30-year schedule; after 60 payments, the remaining balance becomes your balloon.

Pros and Cons

  • Pros: lower monthly payment, short-term flexibility, potential lower rate.
  • Cons: large final payment risk, refinance risk, slower equity build.

When the Balloon Is Due

You must pay the lump sum, refinance, or sell the property. Not planning ahead can lead to default risk—build a plan early.

Balloon vs. Fixed vs. ARM

Fixed: payment certainty, higher monthly cost. ARM: lower early rates but variable later. Balloon: lowest monthly cost for a short horizon, with a large payoff at maturity.

Key Risks & Considerations

  • Refinance/market-rate risk
  • Home value risk (LTV on refi)
  • Cash-flow risk at maturity

Frequently Asked Questions

Can I make extra principal payments?

Yes—this reduces interest and the final balloon.

Are balloon mortgages common?

Less common than fixed/ARM and often fall under non-QM underwriting.