Bank of Clarke County



Balloon Mortgage Calculator

Back to Calculators | Balloon Mortgages Calculator - Definitions

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.

 


NOTE: These calculators are made available to you as self-help tools for your independent use and are not intended to provide financial advice. We cannot guarantee their applicability or accuracy with regard to your individual circumstances. All examples are hypothetical and are for illustrative purposes only.

Bank of Clarke County. Equal Housing FDIC