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Guest

i have a 30/15 balloon mortgage. i borrowed 37,400 at 6.374. How much will I owe and when? a friend said i have to pay a lump sum at the end of 15 yrs. is that true?

carnahandavid · Joined: 21 Dec 2006 Posts: 238 58.41 Dollars($)

Hi Newbie,

Guest

At the end of 15 yr. period you will have to decide about paying off the balance, refinance the loan or sell the home.

sara

Hi Newbie,

Welcome to the forums.

A 30/15 year balloon loan is a fixed rate mortgage for which you will make monthly payments as one has to do for a 30 year fixed rate loan. But the loan has to be paid off at the end of 15 years. So, you will have to pay down the loan balance including unpaid loan amount and interest for the next 15 years (out of total 30 year payments) at the end of the 15th year. The loan balance paid off in a lump sum amount is known as the balloon payment.

For the calculations on the balloon payment, you can calculate the total payment made for the first 15 years and the total payment on a 30 year loan. Then you can subtract the former from the latter to get the amount you will pay in lump sum.

You may use our Fixed rate mortgage payment calculator for simple calculations.

Thanks,

Sara

heavenhack7 · Joined: 05 Apr 2007 Posts: 76 1.14 Dollars($)

ya i think your friend is telling the truth you have to to rpay at the end of 15th year

kenstampe · Posted: Thu Apr 05, 2007 9:27 am Post subject:

$26,998 is the estimated balance at the end of 15 years based on the information you gave. Of course, this assumes that you don't make any extra principal payments on your loan.

At the end of 15 years you either pay that amount or refinance.

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