A balloon loan is a type of loan that is long term; it can be a mortgage which has a large final payment at the end of the loan repayment scheme. Because of the big payment upon the maturity of the loan, this type of loan is usually made out on commercial real estates.
This type of loan does not usually amortize at the end of the loan repayment period.
A balloon loan template is quite simple as it keeps track of the required information neatly for reference purposes.
A balloon loan template can have the following main sections:
* Key Financial Data
Under the Assumptions section, you can record:
* Loan Principal Amount
* Annual Interest Rate
* Amortization period in years
* Years until balloon payment
The Key Financial Data section can include:
* Monthly Payments
* Total Monthly Payments
* Total Amount Paid
* Total Interests
* Balloon Payment
By recording each of the above columns of relevant information, you can determine how much more repayment is required and when to expect the last repayment, which is the balloon payment. This will enable you to keep to your budget in your monthly expenses so that you will be able to settle your balloon payment in due time, as it is usually a much bigger amount than your monthly repayment.
You can take on this balloon loan template for every large loan you take on.
Consider the attached sample template for your convenience.