Finding the numbers on your loan
Everything the calculator needs is in your promissory note or loan agreement:
- Original loan amount and interest rate, on the first page of the note.
- Amortization period. Look for wording like “payments based on a 25-year amortization schedule”. If you only know the payment, try amortization periods until the calculator’s payment matches yours.
- Maturity date. The note will say all unpaid principal and interest is due on a specific date. That is the balloon date. Enter the years from closing to that date as the term.
- Payments made, from your statements or by counting months since the first payment.
If your rate has adjusted during the loan, or you have made extra principal payments, your latest statement’s principal balance is more accurate than any calculator. Use the main balloon calculator with that balance and the remaining term.
Example
A $900,000 loan at 6.5% on a 25-year amortization with a 7-year term. After 48 payments the balance is $834,318. When the balloon comes due 36 months later, $772,586 will still be owed.
A refinance timeline that works
- 12 months out: review the property’s income and value; check the prepayment terms on your note.
- 6–9 months out: get refinance quotes and choose a lender.
- 3–4 months out: appraisal, environmental and title work in progress.
- 30–45 days out: loan approved and closing scheduled.
Starting late is the most common and most expensive mistake with a balloon. Extensions, when lenders grant them, usually come with fees and higher rates.