Try our easy to use balloon payment calculator. For those expecting to remain in their home for a relatively short period of time, 5/25 and 7/23 Convertible, Two-Step, and Balloon mortgages are getting more popular since they often provide lower rates than conventional 30 year mortgages while still giving a fixed payment schedule for 5 or more years.

The risk, in the case of balloon payments, is what happens after the initial fixed period is over and you have the possibility of converting your loan. Here is a calculator to determine your initial fixed payment and to try to answer those questions.

Principal Balance

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Type of Loan

Initial Interest Rate

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Monthly Pre-payment

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(during initial fixed period)