Mortgage Calculator Balloon Payment Principal (amount borrowed): Credit Interest Rate: % Number of payments: Monthly Payment: Total Payment: Balloon Payoff: Remaining Balance: function calculateMortgage() { let _principal = document.getElementById('principal'); let _interestRate = document.getElementById('interestRate'); let _payments = document.getElementById('payments'); let principal = _principal.value; let interestRate = _interestRate.value; let payments = _payments.value; if(isNaN(principal) || isNaN(interestRate) || isNaN(payments)) return; if (principal > 0 && (interestRate > 0 && interestRate <= 100) && payments > 0) { // Calculate the monthly payment let monthlyRate = interestRate / 100.0 / 12.0; let monthlyPayment = (principal*monthlyRate) / (1 - (Math.pow(1/(1 + monthlyRate), payments))); let totalPayment = monthlyPayment * payments; let balloonPayoff = totalPayment - (monthlyPayment * (payments - 1)); let remainingBalance = principal - (monthlyPayment * (payments - 1)); document.getElementById('monthlyPayment').value = monthlyPayment.toFixed(2); document.getElementById('totalPayment').value = totalPayment.toFixed(2); document.getElementById('balloonPayoff').value = balloonPayoff.toFixed(2); document.getElementById('remainingBalance').value = remainingBalance.toFixed(2); } else alert("Please enter valid input."); } let calculateButton = document.getElementById("calculate"); calculateButton.onclick = calculateMortgage; Understanding Mortgage Calculators and Balloon Payments When it comes to taking out a home loan or refinancing an existing mortgage, it's essential to understand the details of the process. One important factor is how calculating the total cost of a loan is done. Fortunately, mortgage calculators are available to help you understand how much you'll have to pay. As part of that calculation, you need to know about balloon payments. What are Mortgage Calculators? Mortgage calculators are software applications that make it easier for borrowers to estimate their total cost. They can be used to compare different loan types and to determine the overall payment amount. A variety of mortgage calculators are available online for free, with varying levels of complexity. Many banks and lenders offer their own calculators that are tailored to their specific products. What is a Balloon Payment? A balloon payment is a large lump sum payment that is due at the end of a loan term. Most balloon payments are the result of a loan's defined amortization schedule, which is set up at the beginning of the loan. This schedule determines when balance payments are due and the amount of each payment. Generally, if payments are not made on time, the borrower will be charged a penalty or late fee. Types of Balloon Payments There are two types of balloon payments: traditional and non-traditional. Traditional balloon payments are set up on an amortization schedule over the course of several years. The payment is often due at the end of the loan’s term, but can vary depending on the lender. Non-traditional balloon payments are not set up on an amortization schedule. Instead, these are generally one-time payments due at the end of the loan's term. Benefits of Using a Mortgage Calculator Using a mortgage calculator to calculate the total cost of your loan is helpful because it gives you a better understanding of how much money you need to pay back. It can help you plan ahead for potential extra expenses, such as a potential balloon payment. Furthermore, when you use a mortgage calculator, you can compare different types of loans to find the best option for you. You can also look for the best rates and terms for your particular situation. How Does a Balloon Payment Impact Your Loans? When a balloon payment comes due, you must have enough cash saved up to cover it. If you don't, then you could find yourself struggling to make the payment. Furthermore, if you are unable to pay the balloon payment, it could lead to foreclosure. Therefore, it's important to make sure that you can afford to pay the balloon payment before you agree to a loan with such a payment. Conclusion Mortgage calculators are a great tool for estimating the total cost of a loan. Balloon payments are a type of payment that can be included on certain amortization schedules. It's important to understand how a balloon payment works and how it will affect your loan. By using a mortgage calculator, you'll be able to get a better understanding of how much you need to pay and how to plan ahead for any balloon payments due in the future.