Everything You Need to Know About Balloon loan
A balloon loan is a type of loan that doesn't wholly amortize over the period of the loan term. Loan terms for balloon loans typically varies between 5-7 years. Then it’s followed by the remainder of the balance (also known as the balloon payment).
The balloon loan is similar to a fixed 30 years home loan, where you have to pay monthly payments within a certain period of time, yet the loan term is much shorter. Though 30 years seems forever, you’re free to go after that. It’s a bit different story, when talking about balloon loans. As in this case- there’s no way out - you are obliged to pay the rest of the loan in one fell swoop, as soon as the loan term is over.
What is it for?
Our Balloon loan calculator is a time saver to companies specialized in the areas of business finance, real estate, construction or car sale. It provides the direct assistance to your potential clients. Because of its interactivity, Balloon loan calculator engages your audience on your website Moreover, it helps to make well measured decision.
Examples of Balloon payment calculator use
Sometimes, when we’re deeply into one topic for very long time, it seems that all is very clear with this thing. Well, loans and finances always should be exceptions in this matter of thinking. Most of the time, loans are the real pain in the neck. They require people to take very serious commitments, evaluate their capabilities and count, count, count for hours. There are numerous of situations where Balloon loan calculator would save the day, but here are some of the most common:
You are taking a $100,000 balloon loan with a 5 year adjustable interest rate of 3.5%. After 5 years, the rate may change. You want to find out, what your monthly payment will be for the loan term, and how much you'll still owe after 5 years, when your balloon payment at the end is $60,000;
Using the example above, let's say your economic situation got better and you decided to make an extra payment, on top of the principal each month. Instead of paying $902.67 per month, you're going to pay $1000.. How this would contribute to shortening your loan pay term?
You are taking $120,000 balloon loan. One of the banks is offering you a 7 year term loan with fixed interest rate of 2%, while another offers you 7 year term loan with the interest rate of 1,5 %, but requires initial deposit size of $10,000. Which one of these offers monthly payments works better for you?
Ballon payment calculator leading users down the conversion funnel
When it comes to long term commitment, especially a financial one, people tend to collect all the necessary information first, evaluate the conditions and then make the final decision. Interactive calculators are great at helping you cover these points, but that’s not all. By adding a few additional elements, your calculator can encourage users to take further steps in your customer journey.
Ballon payment calculator with an appointment booking form
If you're a financial service provider, your website goal is to lead visitors to book an appointment with you and then convert them to customers via live consultations. Adding an order form to your balloon payment calculator will let you facilitate the process, as your users will be able to book a consultation with you straight away. All order and contact information together with the calculation results will be sent to your email and you can customize a direct message triggered by the click on the button.
You can also receive email alerts when consultation requests are submitted and later on have hot lead contact in your database. When creating your calculator add an order button at the end and customize the contact details you want to collect.
See ballon payment calculator with order form in action calculate
Ballon payment calculator mailing results to client’s email
If you dont want to push your client to a meeting straight away, Calconic also offers the possibility to send the calculation results directly to the client’s email address. That way giving them more time to think, but at the same time adding their contact details to your mailing list. Adding a mail results element will let your users download their estimates after adding their email address into the text field and you will be able to reach out to them as a follow up any time. Grow your mailing list in no time!
See ballon payment calculator with mail results function in action calculate
How does it work?
It’s an online widget. It means that in order to use it, you would have to embed it into your website. Once you’ve done that, you’re all set.
Balloon loan calculator is like a chameleon, which adapts to any conditions. You can personalize the Balloon loan calculator, so it would completely meet the specifics of your business. This could be achieved by unlimited options of adding and/or removing input elements and modifying the calculation formula. Our basic version of the Balloon loan calculator lets you set loan amount, interest rate, term, size of initial deposit, balloon payment. If you find some of these options unnecessary or maybe you’re missing some of them-let’s say a change of repayment frequency orset of time until balloon payment etc., you can add or remove it just with a few clicks.
Also, you can fully adjust the appearance of the Balloon loan calculator. Customize design, color and text to make it look consistent with your website style. It is completely compatible with all modern browsers, and totally responsive - works smoothly on any device whether it’s a smartphone, a tablet or a desktop computer.
Benefits of having Balloon loan calculator on your website
Benefits to your business:
Engage your website visitors. Using this tool is so simple and fun! Despite its simplicity, Balloon loan calculator provides your potential customers with the information, they’re looking for. By the moment your potential customers start entering required information, their attention is yours. They’re sucked into the game. Therefore, it’s a piece of cake to collect sales leads (no matter it’s an email, an order form or a phone call to receive more details), after they’re done with calculations.
Advance your work processes. Why would you answer tons of email inquiries, phone calls instead of providing your potential customer a chance to do it by his own? Not to mention that this way you are collecting only qualified leads. The feedback you get using Balloon payment calculator is not some random remarks/questions from the stranger. It’s from those, who spent quite some time thinking while filling the calculator and have genuine interest.
Integrate with sales management tools. Balloon loan has a feature of transferring your leads directly to SalesForce, HubSpot or any other existing CRM system, you’d be using. This way you can keep all prospects and inquiries in a single place.
Increase your brand trust. Customers will keep coming back and recommend you, if you provide them, what they were looking for. Balloon loan calculator is a great source of information.
Benefits to your customers:
A simple way to evaluate their personal potential. Balloon loan calculator provides a lot of information at on place. While other information sources gives the general information about loans, sometimes not relevant examples, Balloon payment calculator provides loan projections with personalized numbers.
One-level communication & results on the spot. Balloon loan calculator provides results in seconds. It means, your potential customer skips the long process of his quote or inquiry. Alternately, the numbers he has been looking for are displayed immediately. No consultancy needed.
Balloon loan calculator is just a single pick from our infinite selection of calculators, acknowledged tools in improving the quality of your customer service. With CALCONIC you can create any interactive calculator you can think of! For instance, you can build a calculator that will allow your potential customer to figure the maximum he can borrow if his monthly payment capability is $300 and a loan term is 5 years. Or calculate, what size of customers balloon payment will be at the end, if he borrows $100,000 for 5 years and he can pay not much than $400 per month.