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Excel Loan Amortization Schedule With Balloon Payment In Harris
State:
Multi-State
County:
Harris
Control #:
US-0019LTR
Format:
Word;
Rich Text
Instant download
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FAQ
Accounting Treatment: The balloon payment is usually recorded as a liability in the financial statements until it becomes due.
The formula to be used will be =IPMT( 5%/12, 1, 60, 50000). In the example above: As the payments are made monthly, it was necessary to convert the annual interest rate of 5% into a monthly rate (=5%/12), and the number of periods from years to months (=512).
In some cases, you may be able to negotiate with your finance provider to spread the balloon payment over monthly instalments – this is essentially what refinancing is. Doing this can help make the payment more manageable and reduce the financial strain of a large lump sum payment.
Even a single extra payment made each year can reduce the amount of interest and shorten the amortization, as long as the payment goes toward the principal and not the interest. Just make sure your lender processes the payment this way.
You can ask your lender for an amortization schedule, but this might not be as helpful if you're looking to see how extra payments could impact that schedule.
More info
Download a Free Balloon Loan Payment Calculator for Excel. Calculate the balloon payment and amortization schedule for variaous loans.The tutorial shows how to build an amortization schedule in Excel to detail periodic payments on an amortizing loan or mortgage. Applicant comments and an amortization schedule from the lender are required if the payments are not based on standard amortization.
