Principal balance left on a loan
after payments have been made. Balloon loans
Example 5:
The original principal balance on
the mortgage is $100,000. The borrower is making 12 monthly
payments a year of $804.62 per month for 30 years (360
months). The interest rate is 9% p.a.
(First calculate your monthly mortgage payments,
tutorial 4, or the original balance if you do not know it, tutorial 6.)
The borrower has made 84 payments on the above mortgage. What is
the principal balance now owed? NOTE If they have made 84 payments then
they have
276
payments left.(360-84). Enter 276 in the number of payments box. Answer is
$93,639.44.
Try using different values, REMEMBER, always
SUBTRACT the number of months from the original term of the loan.
Enter the numbers above in the boxes below. Do
not enter a number in the box next to "Compute". Then click
"Compute".
You can use this example to figure balloon payments. For
example: a loan is to be amortized over 360 monthly payments with a balloon payment after
84 payments.
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