ÿþ<HTML> <HEAD> <TITLE>Balloon Mortgages</TITLE> <META HTTP-EQUIV="Content-Type" CONTENT="text/html; charset=iso8859-1"> <META NAME="description" CONTENT="Financial Calculators, ©1998-2010 KJE Computer Solutions, LLC. For more information please see http://www.dinkytown.net"> <STYLE> <!-- BODY, TABLE, TD, TH, UL, OL, DD, DL, P, BR { font-family: helvetica, arial, sans-serif; font-size: 10pt; } H1 { font-family: helvetica, arial, sans-serif; font-size: 13pt; font-weight: bold; } DT { font-family: helvetica, arial, sans-serif; font-size: 10pt; font-weight: bold; } P.footer { font-family: helvetica, arial, sans-serif; font-size: 9pt; } DIV.large { font-family: helvetica, arial, sans-serif; font-size: 13pt; font-weight: bold; } --> </STYLE> </HEAD> <!-- Financial Calculators, ©1998-2008 KJE Computer Solutions, LLC. 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For more information please see: <A HREF="http://www.dinkytown.net">http://www.dinkytown.net</A> --> <H1>Balloon Mortgages</H1>A balloon mortgage can be an excellent option for many home buyers. A balloon mortgage is usually rather short, with a term of five to seven years, but the payment is based on a term of 30 years. They often have a lower interest rate, and can be easier to qualify for than a traditional 30 year fixed mortgage. There is, however, a risk to consider. At the end of your loan term you will need to pay off your outstanding balance. This usually means you must refinance, sell your home or convert the balloon mortgage to a traditional mortgage at the current interest rates.<P><CENTER> <!--[if IE]><object name="calculator" classid="clsid:8AD9C840-044E-11D1-B3E9-00805F499D93" codebase="http://java.sun.com/update/1.6.0/jinstall-6-windows-i586.cab#Version=1,4,0,0" height="380" width="565"><param name="code" value="MortgageBalloon" /><param name="archive" value="dinkytown.jar" /> <P style="font-size:1px; color: #ffffff" line-height: 1px><![endif]--><![if !IE]><P style="font-size:1px; color: #ffffff" line-height: 1px><![endif]></P><![if !IE]><APPLET name="calculator" code="MortgageBalloon.class" align="baseline" WIDTH="565" HEIGHT="380" archive="dinkytown.jar"><![endif]> <PARAM name="INTEREST_RATE" value="6.00"> <PARAM name="TERM" value="7"> <PARAM name="LOAN_AMOUNT" value="100000"> <PARAM name="PREPAY_AMOUNT" value="0"> <PARAM name="PREPAY_STARTS_WITH" value="1"> <!--CUSTOM PARAMETERS--> <PARAM name="TEXT_FOR_REPORT" value="<HTML> <HEAD> <TITLE>Balloon Mortgages</TITLE> <META HTTP-EQUIV='Content-Type' CONTENT='text/html; charset=iso8859-1'> <META NAME='description' CONTENT='Financial Calculators, &QCPQ;1998-2010 KJE Computer Solutions, LLC. For more information please see http://www.dinkytown.net'> <STYLE> <!-- BODY, TABLE, TD, TH, UL, OL, DD, DL, P, BR { font-family: helvetica, arial, sans-serif; font-size: 10pt; } H1 { font-family: helvetica, arial, sans-serif; font-size: 13pt; font-weight: bold; } DT { font-family: helvetica, arial, sans-serif; font-size: 10pt; font-weight: bold; } P.footer { font-family: helvetica, arial, sans-serif; font-size: 9pt; } DIV.large { font-family: helvetica, arial, sans-serif; font-size: 13pt; font-weight: bold; } --> </STYLE> </HEAD> <BODY bgcolor='#FFFFFF' LINK='#003399' VLINK='#666666' BGCOLOR='#FFFFFF'> <CENTER><table border=0 bgcolor='#000000' width=468 cellspacing=1 cellpadding=0><tr><td width='100%'><table bgcolor='#FFFFDD' border=0 width=468 cellspacing=1 cellpadding=5><tr><td width='100%' align=center valign=middle><DIV class=large>Balloon Mortgage Results </DIV></td></tr></table></TD></TR></TABLE></CENTER> <P> <H1>Your payment is MONTHLY_PI for TERM_BALLOON years with a rate of INTEREST_RATE.</H1>**GRAPH**<P>Your payment of MONTHLY_PI is fixed for the TERM_BALLOON year term of your balloon mortgage. After REGULAR_PAYMENTS regular monthly payments you will have a balloon payment of BALLOON_PAYMENT that will need to be paid off or refinanced. (Your ending balance of BALLOON_PAYMENT does not include any prepayments.)<P> <CENTER><table border=0 bgcolor='#000000' width=95% cellspacing=1 cellpadding=0><tr><td width='100%'><table bgcolor='#FFFFFF' border=0 width=100% cellspacing=1 cellpadding=5> <TR BGCOLOR='#CCCCCC'><TD COLSPAN=2><CENTER><B>Mortgage Summary</B></CENTER></TD></TR> <TR><TD valign=top><b>Payments</b></TD><TD>REGULAR_PAYMENTS monthly payments of MONTHLY_PI<BR> 1 balloon payment of BALLOON_PAYMENT</TD></TR> <TR><TD><b>Loan amount</b></TD><TD>LOAN_AMOUNT</TD></TR> <TR><TD><b>Interest rate</b></TD><TD>INTEREST_RATE</TD></TR> <TR><TD><b>Term</b></TD><TD>TERM_BALLOON years</TD></TR> <TR><TD><b>Amortization period</b></TD><TD>TERM years</TD></TR> <TR BGCOLOR='#CCCCCC'><TD><b>Total of regular payments</b></TD><TD>TOTAL_OF_PAYMENTS</TD></TR> <TR BGCOLOR='#CCCCCC'><TD><b>Balloon payment</b></TD><TD>BALLOON_PAYMENT</TD></TR> <TR BGCOLOR='#CCCCCC'><TD><b>Total interest paid</b></TD><TD>INTEREST_PAID</TD></TR> </TABLE></TD></TR></TABLE> </CENTER> <H1>Prepayment Results</H1><P>Principal prepayments on your mortgage can save you a great deal of interest. Below is a summary of your proposed prepayments for your balloon mortgage. <P> <CENTER><table border=0 bgcolor='#000000' width=95% cellspacing=1 cellpadding=0><tr><td width='100%'><table bgcolor='#FFFFFF' border=0 width=100% cellspacing=1 cellpadding=5> <TR BGCOLOR='#CCCCCC'><TD COLSPAN=2><CENTER><B>Prepayment Summary</B></CENTER></TD></TR> <TR><TD><b>Amount</b></TD><TD>PREPAY_AMOUNT PREPAY_TYPE</TD></TR> <TR><TD><b>Start with payment</b></TD><TD>PREPAY_STARTS_WITH&NBSP;</TD></TR> <TR><TD><b>Total payments</b></TD><TD>PREPAY_TOTAL_OF_PAYMENTS&NBSP;</TD></TR> <TR><TD><b>Total interest</b></TD><TD>PREPAY_INTEREST_PAID&NBSP;</TD></TR> <TR><TD><b>Interest savings</b></TD><TD>PREPAY_INTEREST_SAVINGS&NBSP;</TD></TR> <TR BGCOLOR='CCCCCC'><TD><b>Balloon payment</b></TD><TD>PREPAY_BALLOON_PAYMENT&NBSP;</TD></TR> </TABLE></TD></TR></TABLE> </CENTER> <P><DIV class=large>Payment schedule</DIV> <HR SIZE=1> **REPEATING GROUP** <BR> <HR SIZE=1> <CENTER><P class=footer> Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. </P></CENTER><br><br> </BODY> </HTML> "> <H1><CENTER>This Financial Calculator requires SUN's Java"! Plug-in. If you see this message you will need to download SUN's Java"! Plug-in. This can be done automatically by clicking the yellow bar at the top of your browser and choosing  Install ActiveX Control . </CENTER></H1> <OL> You can also get SUN's Java"! Plug-in here: <A href="http://www.java.com/en/download/download_the_latest.jsp" target=_blank><b>Get the Java"! Plug-in!</b></A> <P>For more information about this Plug-in please visit: <A href="http://www.dinkytown.net/money/sunjvm.html" target=_blank><b>SUN's Java"! Plug-in</b></A> <BR>For more information these financial calculators please visit: <A href="http://www.dinkytown.net" target=_blank><b>Financial Calculators from KJE Computer Solutions, LLC</b></A> </OL><!--[if IE]></OBJECT><![endif]--><![if !IE]></APPLET><![endif]> </CENTER><CENTER><SCRIPT>document.write(showbuttons())</SCRIPT> </CENTER> <H1>Definitions</H1><P><TABLE align='center' WIDTH="95%"><TR><TD><DL><!--DEFN_START--> <DT><B>Mortgage amount</B><DD>Original or expected balance for your mortgage.<P> <DT><B>Interest rate</B><DD>Annual interest rate for this mortgage.<P> <DT><B>Term in years</B><DD>The number of years over which you will repay this loan. The most common balloon mortgage terms are 5 years and 7 years. After the mortgage term is complete, you will then need to refinance or pay off the remaining balance.<P> <DT><B>Monthly payment</B><DD>Monthly principal and interest payment (PI). The monthly payment is calculated using a 30 year term.<P> <DT><B>Total payments</B><DD>Total of all monthly payments over the term of the balloon mortgage. This total payment amount assumes that there are no prepayments of principal.<P> <DT><B>Total interest</B><DD>Total of all interest paid over the term of the balloon mortgage. This total interest amount assumes that there are no prepayments of principal.<P> <DT><B>Prepayment type</B><DD>The frequency of prepayment. The options are: none, monthly, yearly, and one-time payment.<P> <DT><B>Prepayment amount</B><DD>Amount that will be prepaid on your mortgage. This amount will be applied to the mortgage principal balance, based on the prepayment type.<P> <DT><B>Start with payment</B><DD>This is the payment number that your prepayments will begin with. For a one time payment, this is the payment number that the single prepayment will be included in. All prepayments of principal are assumed to be received by your lender in time to be included in the following month's interest calculation.<P> <DT><B>Savings</B><DD>Total amount of interest you will save by prepaying your mortgage. <!--DEFN_END--></DL></TD></TR></TABLE> <BR> <HR SIZE=1> <CENTER> <P class=footer> Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. </P></CENTER> <BR> </BODY> </HTML>