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Now let me show you how to calculate balloon payments, also known as remaining
balances.
We'll enter in a two hundred and fifty thousand dollar loan amount,
a thirty year term
at 5.875 interest. We'll go ahead and calculate our payment.
Let's look at the balance after eight years.
So you do [8]
[Shift]
[Amort]
and the second function of [Amort] is balance.
This will give us our balance after the eight years.
Let's say you have a client that's in his
payment fifty five and he's looking at doing a refinance with them, for
example.
You can look at the fifty-fifth payment. If you [5][5] [Shift]
backspace, which is periodic for monthly,
[Amort]
which will give you your balance, which is a second function.
So [Shift][Amort]
and that will be two hundred and thirty three thousand nine and fifty seven
for our fifty-fifth payment. That would be the remaining balance.
So that's a quick overview on the balloon payment function.
For more details you can download our user's guide at www.calculated.com/support.