Balloon Amortization+

This software, called Balloon Amortization, is a 16-bit program that simulates the payment schedule of a balloon payment mortgage. It shows how the loan payments can be reduced initially, followed by a large payment at the end of the balloon period or refinancing the loan to reduce the impact of the high-interest rates.

Bankers often promote this type of mortgage with a one to five year balloon, but what they don't disclose is that the interest is usually based on a 30-year term. Without understanding the numbers, this can come as a shock to many borrowers. Balloon Amortization helps users understand the implications of this type of mortgage payment by presenting the effect it has on the loan term and total interest paid.

The printout generated by the software is of high quality and can be used by financial planners as it includes a "prepared by:" area. This feature makes it particularly useful for financial advisors when advising clients on the balloon payment method of mortgage payment. Overall, Balloon Amortization can be a valuable tool for anyone looking to better understand balloon payments and their potential impact.