WinAmort Professional 2.0

Fixed Rate - Example 3

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Fixed Rate - Example 3

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Fixed Rate - Example 3

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When the payment is insufficient to pay off the mortgage or loan principal in the

specified period, a sum of money accumulates - called a Balloon amount. This

amount is usually due in full at the end of the term or amortization period. A lease

can also have a Balloon amount. The buyout price often quoted for a car or piece

of equipment in a lease can be treated as a Balloon amount.


Fixed Rate - EXAMPLE 3

On January 10, 2011, Buildall Contractors arrange a construction loan for $750,000.00 at 12.25 percent annual interest. The payment schedule is such that $15,000.00 per month is to be paid for 10 months while the construction is taking place. The remaining amount is to be paid back in one lump sum. The first payment is due on February 10, 2011.


SolveSolve The final payment amount called the Balloon Payment.


action Enter the data as illustrated in the following screen.


Fixed Rate - Balloon Example






Compute_button button beside the Balloon Payment field option.



To pay off the loan, a final payment of $688,095.47 will be required.


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