Balloon and Seller-Financing Calculator

How this calculator works

A balloon note uses a long amortization to keep the payment low but comes due early, for example payments based on 30 years with the balance due in 5. Seller financing often works this way: the buyer pays the seller monthly and refinances or sells before the balloon date.

Enter the note terms to see the payment, how much principal is paid before the balloon, and the amount due at the end.

The payment is based on the amortization period; the loan term sets when the remaining balance is due.
You can enter an agreed fixed payment instead. If it is less than the monthly interest, the balance grows and the results flag negative amortization.

Worked example

Example values are illustrative, not quotes or market data. These are the numbers the calculator above starts with.

Inputs

Purchase price: $300,000
Down payment: $30,000 (10%)
Interest rate: 7.5%
Payment based on (amortization): 30 years
Balloon due in (years): 5
Interest-only months: 0

Results

Amount financed: $270,000
Monthly payment: $1,888
Balloon: $255,467
Due at month: 60
Interest before balloon: $98,740

Common questions

Is seller financing legal in Texas?

Yes, but residential seller financing can fall under federal and Texas lending rules, including licensing requirements for some sellers. Have a Texas real estate attorney prepare the note and deed of trust.

What happens if I cannot pay the balloon?

The note is in default unless the holder agrees to extend it. Plan the refinance or sale well before the due date.

Can a balloon loan be interest-only?

Yes. Set interest-only months to cover the time before the balloon.

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Estimate only. Actual loan terms, eligibility, insurance, taxes, and settlement charges require verification. These are planning estimates, not a lender Loan Estimate, Closing Disclosure, appraisal, or approval. Michael O'Neal is a real estate broker, not a lender, appraiser, attorney or tax adviser.