Balloon Loan Amortization Schedule Template
A balloon loan is a type of loan that has a large, or "balloon," payment due at the end of the loan term. This type of loan is typically used for real estate or business loans where the borrower plans to sell the asset at the end of the loan term to pay off the remaining balance.
Creating an amortization schedule for a balloon loan can help borrowers understand how their payments will be structured over the life of the loan. By inputting key loan details such as the loan amount, interest rate, and balloon payment amount, borrowers can see how their loan will be paid off over time.
Here is a template for creating a balloon loan amortization schedule:
Balloon Loan Amortization Schedule Template
- Loan Amount: [Enter loan amount]
- Interest Rate: [Enter interest rate]
- Loan Term (in months): [Enter loan term in months]
- Balloon Payment Amount: [Enter balloon payment amount]
Month: [1]
- Beginning Balance: [Loan amount]
- Monthly Payment: [Calculate using loan amount, interest rate, and loan term]
- Interest Paid: [Calculate using beginning balance and interest rate]
- Principal Paid: [Calculate using monthly payment and interest paid]
- Ending Balance: [Calculate using beginning balance and principal paid]
Month: [2]
- Beginning Balance: [Ending balance from previous month]
- Monthly Payment: [Calculate using loan amount, interest rate, and loan term]
- Interest Paid: [Calculate using beginning balance and interest rate]
- Principal Paid: [Calculate using monthly payment and interest paid]
- Ending Balance: [Calculate using beginning balance and principal paid]
Repeat this process for each month until the end of the loan term, at which point the balloon payment will be due. The balloon payment amount should equal the remaining balance on the loan.
Creating a balloon loan amortization schedule can provide borrowers with a clear picture of how their loan will be paid off over time, including the impact of a large balloon payment at the end of the loan term. This template can be a helpful tool for borrowers to track their loan payments and plan for the future.