A balloon loan calculator or balloon mortgage payment is a payment in which you plan to pay off your auto or mortgage loan in a big chunk after a number of small regular monthly payments. Moreover, To determine what that balloon payment will be. You can download Balloon loan calculator below which calculates the regular monthly payment and balloon payment for a loan period between 1 and 360 months (30 years). This spreadsheet can be used for other types of balloon loan calculations as well.
Calculate monthly payments, total interest, and amount of the balloon payment for a simple loan using the Excel spreadsheet template.
This spreadsheet includes an amortization and payment schedule suitable for car loans, business loans, and mortgage loans.
Why a Balloon Payment mortgage?
I originally created this spreadsheet to figure out payment schedule for a car loan or auto loan. Furthermore because I didn’t have the cash in hand to pay for the car in one lump sum, but I knew that I would after 6 months. So, to keep monthly payments low at first, we set up a 3-year loan with the plan to pay loan off completely after about 6 months.
This version take into account the fact that the regular payment and the interest are round to the nearest cent. Thus, The “Balloon finance Payment with Rounding” value is taken directly from the amortization schedule, which ensures that the final balance is zero.
Using the Balloon Payment Loan
This spreadsheet is useful as a mortgage calculator, particularly for calculating balloon payment that is when you sell your house after a number of years. However, there are many other costs associate with home buying/selling that the calculator does not take into account. Such as property taxes, escrow payments, mortgage insurance, homeowner’s insurance, closing costs, etc.
Interest-Only Mortgage Loans
An option is add to the spreadsheet to choose between monthly payments that are amortize vs. payments that are interest-only. While interest-only loans may look appealing due to low monthly payment, you still have to pay off the loan eventually. Beware of the consumer debt spiral!