Mortgage Balloon Payment Calculator

Balloon mortgages amortize over 30 years but mature in 5–7 — balloon due at end.

Loan amount

Rate %

Amortization years

Term until balloon (years)

Balloon payment

$452,081

Monthly payment

$3,160

Total interest paid

$217,550

How the math works

Monthly = standard amortization payment. Balloon = remaining balance at end of term.

$500k 6.5% 30/7: $3,160/mo × 7 yr → $456,200 balloon at year 7. Total interest $221,640.

How to Use

Enter loan amount.
Enter rate %.
Enter amortization years.
Enter term until balloon (years).
Read balloon payment.

Frequently Asked Questions

Balloon mortgage structure?

30-year amortization, 5/7/10 year maturity. Lower payment than fully-amortizing 5/7/10-year loan. Balloon = remaining balance at maturity. Refinance, sell, or cash payoff required at maturity. Risk: if rates rise or property declines, refi may not be available. Common: commercial mortgages, owner-financed deals, family loans. CMBS standard: 5–10 year IO + balloon. Mitigation: extension option ($1–10k fee), conversion to permanent at maturity (if pre-negotiated).

How does this debt analysis fit a workout strategy?

Workout, default, and recapitalization decisions depend on the gap between in-place debt and current asset value. Lenders evaluate cure cost, foreclosure timeline + cost, broker price opinion (BPO), and borrower equity. Borrowers evaluate equity in the property, refinance feasibility, and forbearance economics. This calculator provides one input to that multi-factor decision.

Discounted payoff (DPO) vs forbearance vs deed in lieu?

DPO: lender accepts less than full balance to avoid foreclosure cost, common with non-recourse and underwater assets. Forbearance: payment deferral 6–18 months, balance accrues, useful when value will recover. Deed in lieu: borrower transfers title to lender, faster than foreclosure but lender takes full risk. DPO often best when borrower has new capital + lender wants quick exit.

Special servicing dynamics?

CMBS loans transfer to special servicer at default or maturity default. Special servicer compensation aligns with workout, but timeline is 6–24 months and fees stack ($25–250k+ in costs). Whole-loan and balance-sheet lenders move faster but with less flexibility. Bridge and debt fund lenders most flexible. Time-to-resolution and total friction cost should be weighted in any borrower scenario.