Balloon Loan Payment Calculator: A Helpful Tool For Financial Planning
Free Balloon Loan Calculator for Excel Balloon Mortgage Payment from www.vertex42.com Introduction If you are considering taking out a balloon loan, it is essential to have a clear understanding of your payment obligations. A balloon loan is a type of loan that offers lower monthly payments for a specified period, followed by a larger lump sum payment, known as the balloon payment, at the end of the loan term. To help you plan your finances effectively, a balloon loan payment calculator can be a valuable tool. This article will provide an overview of how a balloon loan works and how to use a balloon loan payment calculator. What is a Balloon Loan? A balloon loan is a type of loan that offers lower monthly payments for a certain period, typically ranging from five to seven years. At the end of this period, the borrower is required to make a lump sum payment, known as the balloon payment, to pay off the remaining loan balance. Balloon loans are often used for real estate transactions