Parent Category: calculators Category: Financial Calculators

Balloon Loan Calculator

Balloon Loan Calculator helps calculating the payment schedule of a Ballon Loan

A balloon loan is a type of loan that does not fully amortize over its term. Since it is not fully amortized, a balloon payment is required at the end of the term to repay the remaining principal balance of the loan. Balloon loans can be attractive to short-term borrowers because they typically carry lower interest rates than loans with longer terms; however, the borrower must be aware of refinancing risks as there's there's a risk the loan may reset at a higher interest rate.