# 30/15 Balloon Mortgage Amortization Example

Balloon Mortgage

In this example, we will compare two mortgages for \$100,000. The first is a 30/15 balloon mortgage. It is amortized over 30 years. The balloon payment is due in 15 years. Its interest rate is fixed at 4.25%. The other mortgage is a 30 year fixed rate mortgage at 5.25%.

After reviewing this example, enter your desired mortgage terms into the balloon mortgage calculator to help you decide which mortgage best meets your needs.

Balloon Payment: \$65,885
(Month 180)

The balloon mortgage requires a \$492 monthly principal and interest payment. This represents a savings of \$60 per month when compared to the 30 year fixed. However, the 30/15 has a balloon payment of \$65,885 due in 180 months. The borrower will have to compare the monthly savings of \$60 for 180 months with much higher risk of the balloon mortgage. Major risks presented by the balloon mortgage include refinance risk, interest rate risk and and the risk of not being able to sell the home at a high enough price in time to make the balloon payment.

MonthPrincipal
Interest
Payment
InterestPrincipalBalance
1\$492\$354\$138\$99,862
2\$492\$354\$138\$99,724
3\$492\$353\$139\$99,585
4\$492\$353\$139\$99,446
5\$492\$352\$140\$99,306
6\$492\$352\$140\$99,166
7\$492\$351\$141\$99,025
8\$492\$351\$141\$98,884
9\$492\$350\$142\$98,742
10\$492\$350\$142\$98,600
11\$492\$349\$143\$98,457
12\$492\$349\$143\$98,314
Year 1\$5,903\$4,217\$1,686
13\$492\$348\$144\$98,170
14\$492\$348\$144\$98,026
15\$492\$347\$145\$97,881
16\$492\$347\$145\$97,736
17\$492\$346\$146\$97,590
18\$492\$346\$146\$97,444
19\$492\$345\$147\$97,297
20\$492\$345\$147\$97,150
21\$492\$344\$148\$97,002
22\$492\$344\$148\$96,854
23\$492\$343\$149\$96,705
24\$492\$342\$149\$96,555
Year 2\$5,903\$4,144\$1,759
25\$492\$342\$150\$96,405
26\$492\$341\$150\$96,255
27\$492\$341\$151\$96,104
28\$492\$340\$152\$95,952
29\$492\$340\$152\$95,800
30\$492\$339\$153\$95,647
31\$492\$339\$153\$95,494
32\$492\$338\$154\$95,340
33\$492\$338\$154\$95,186
34\$492\$337\$155\$95,031
35\$492\$337\$155\$94,876
36\$492\$336\$156\$94,720
Year 3\$5,903\$4,068\$1,835
37\$492\$335\$156\$94,564
38\$492\$335\$157\$94,407
39\$492\$334\$158\$94,249
40\$492\$334\$158\$94,091
41\$492\$333\$159\$93,932
42\$492\$333\$159\$93,773
43\$492\$332\$160\$93,613
44\$492\$332\$160\$93,453
45\$492\$331\$161\$93,292
46\$492\$330\$162\$93,130
47\$492\$330\$162\$92,968
48\$492\$329\$163\$92,805
Year 4\$5,903\$3,989\$1,915
49\$492\$329\$163\$92,642
50\$492\$328\$164\$92,478
51\$492\$328\$164\$92,314
52\$492\$327\$165\$92,149
53\$492\$326\$166\$91,983
54\$492\$326\$166\$91,817
55\$492\$325\$167\$91,650
56\$492\$325\$167\$91,483
57\$492\$324\$168\$91,315
58\$492\$323\$169\$91,147
59\$492\$323\$169\$90,977
60\$492\$322\$170\$90,808
Year 5\$5,903\$3,906\$1,998
61\$492\$322\$170\$90,637
62\$492\$321\$171\$90,466
63\$492\$320\$172\$90,295
64\$492\$320\$172\$90,123
65\$492\$319\$173\$89,950
66\$492\$319\$173\$89,777
67\$492\$318\$174\$89,603
68\$492\$317\$175\$89,428
69\$492\$317\$175\$89,253
70\$492\$316\$176\$89,077
71\$492\$315\$176\$88,901
72\$492\$315\$177\$88,723
Year 6\$5,903\$3,819\$2,084
73\$492\$314\$178\$88,546
74\$492\$314\$178\$88,367
75\$492\$313\$179\$88,188
76\$492\$312\$180\$88,009
77\$492\$312\$180\$87,829
78\$492\$311\$181\$87,648
79\$492\$310\$182\$87,466
80\$492\$310\$182\$87,284
81\$492\$309\$183\$87,101
82\$492\$308\$183\$86,918
83\$492\$308\$184\$86,734
84\$492\$307\$185\$86,549
Year 7\$5,903\$3,729\$2,175
85\$492\$307\$185\$86,363
86\$492\$306\$186\$86,177
87\$492\$305\$187\$85,991
88\$492\$305\$187\$85,803
89\$492\$304\$188\$85,615
90\$492\$303\$189\$85,427
91\$492\$303\$189\$85,237
92\$492\$302\$190\$85,047
93\$492\$301\$191\$84,856
94\$492\$301\$191\$84,665
95\$492\$300\$192\$84,473
96\$492\$299\$193\$84,280
Year 8\$5,903\$3,634\$2,269
97\$492\$298\$193\$84,087
98\$492\$298\$194\$83,892
99\$492\$297\$195\$83,698
100\$492\$296\$196\$83,502
101\$492\$296\$196\$83,306
102\$492\$295\$197\$83,109
103\$492\$294\$198\$82,911
104\$492\$294\$198\$82,713
105\$492\$293\$199\$82,514
106\$492\$292\$200\$82,314
107\$492\$292\$200\$82,114
108\$492\$291\$201\$81,913
Year 9\$5,903\$3,536\$2,367
109\$492\$290\$202\$81,711
110\$492\$289\$203\$81,509
111\$492\$289\$203\$81,305
112\$492\$288\$204\$81,101
113\$492\$287\$205\$80,897
114\$492\$287\$205\$80,691
115\$492\$286\$206\$80,485
116\$492\$285\$207\$80,278
117\$492\$284\$208\$80,070
118\$492\$284\$208\$79,862
119\$492\$283\$209\$79,653
120\$492\$282\$210\$79,443
Year 10\$5,903\$3,434\$2,470
121\$492\$281\$211\$79,233
122\$492\$281\$211\$79,021
123\$492\$280\$212\$78,809
124\$492\$279\$213\$78,596
125\$492\$278\$214\$78,383
126\$492\$278\$214\$78,168
127\$492\$277\$215\$77,953
128\$492\$276\$216\$77,738
129\$492\$275\$217\$77,521
130\$492\$275\$217\$77,304
131\$492\$274\$218\$77,085
132\$492\$273\$219\$76,866
Year 11\$5,903\$3,327\$2,577
133\$492\$272\$220\$76,647
134\$492\$271\$220\$76,426
135\$492\$271\$221\$76,205
136\$492\$270\$222\$75,983
137\$492\$269\$223\$75,760
138\$492\$268\$224\$75,537
139\$492\$268\$224\$75,312
140\$492\$267\$225\$75,087
141\$492\$266\$226\$74,861
142\$492\$265\$227\$74,634
143\$492\$264\$228\$74,406
144\$492\$264\$228\$74,178
Year 12\$5,903\$3,215\$2,688
145\$492\$263\$229\$73,949
146\$492\$262\$230\$73,719
147\$492\$261\$231\$73,488
148\$492\$260\$232\$73,256
149\$492\$259\$232\$73,024
150\$492\$259\$233\$72,790
151\$492\$258\$234\$72,556
152\$492\$257\$235\$72,321
153\$492\$256\$236\$72,086
154\$492\$255\$237\$71,849
155\$492\$254\$237\$71,611
156\$492\$254\$238\$71,373
Year 13\$5,903\$3,098\$2,805
157\$492\$253\$239\$71,134
158\$492\$252\$240\$70,894
159\$492\$251\$241\$70,653
160\$492\$250\$242\$70,411
161\$492\$249\$243\$70,169
162\$492\$249\$243\$69,925
163\$492\$248\$244\$69,681
164\$492\$247\$245\$69,436
165\$492\$246\$246\$69,190
166\$492\$245\$247\$68,943
167\$492\$244\$248\$68,695
168\$492\$243\$249\$68,447
Year 14\$5,903\$2,977\$2,926
169\$492\$242\$250\$68,197
170\$492\$242\$250\$67,947
171\$492\$241\$251\$67,695
172\$492\$240\$252\$67,443
173\$492\$239\$253\$67,190
174\$492\$238\$254\$66,936
175\$492\$237\$255\$66,681
176\$492\$236\$256\$66,425
177\$492\$235\$257\$66,169
178\$492\$234\$258\$65,911
179\$492\$233\$258\$65,653
180\$65,885\$233\$65,653\$0
Year 15\$71,297\$2,850\$68,447
Grand
Total
\$153,942\$53,942\$100,000

## Balloon Mortgage Calculator - Help

Amortization Schedule
The amortization schedule show you how monthly principal and interest payment and principal balances change over the life of your loan.
Balloon Term
The Balloon term is the length of time after which the remaining principal balance on your mortgage is due. Mortgages usually have a balloon term that is the same as the amortization term. Your final payment for those mortgage may be slightly different. Mortgages where the balloon term is shorter than the amortization term are called balloon mortgages. These typically result in a very large final required payment and, thus, are much riskier mortgages.
Interest
The portion of your mortgage payment that is due to the interest rate being applied to the principal balance. The Total Interest for a mortgage is the sum of all interest paid over the life of a loan.
Interest Rate
The percentage of the principal balance of your mortgage that determines how much interest you must pay. The interest rate on your mortgage may change or remain the same depending on the type of loan you have.
Loan Amount
The initial principal balance or your mortgage at closing.
Principal
The portion of your mortgage payment that is used to pay down the current balance of your mortgage. The principal balance represents how much you owe on the mortgage.
Term
The amortization term is one of the key factors that determine your required mortgage payment. Your required mortgage payment for fully amortizing mortgages is the amount that would result in the mortgage being closest to being paid off by the end of the amortization term. Longer amortization terms result in lower required mortgage payments for fully amortizating mortgages, all other things being equal.