How should I model a balloon payment on a mortgage


I'm trying to model a move, including selling my current house and using the proceeds as a balloon payment on a new house mortgage. If I put down a 20% down payment on the Change of Home panel amortized over 15 years, that will get reflected in the housing report. If I increase the the down payment to reflect a balloon payment, the housing report will show a lower mortgage payment, but still over 15 years, whereas in reality a balloon payment will shorten the duration of the mortgage period, but not the contractual monthly payment. Any recommendations on how to make the report reflect the shorter duration as a result of the balloon payment?


dan royer's picture

You'd have to use special expenditures with the proper tax consequences--perhaps one set of expenditures for the interest (tax deductible?) and one set for the principal payments. It might end up being a combination of mortgage entered and special expenditures. But you can enter no mortgage and then create the proper payment stream with special expenditures I think.

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