7 Year Balloon Loan (excel Worksheet)
Use this template to calculate monthly loan payments and prepare an amortization schedule for a 7 year balloon loan. A balloon loan requires a large final payment at some future date. The advantage of such an arrangement is that the borrower makes payments based on a traditional mortgage term -- such as15 or 30 years -- at an interest rate that reflects the typically lower annual rate of a shorter-term loan (7years). The loan amortization is any period that you choose and affects the monthly payment you will make during the seven years. You can lower the monthly payment by entering a longer amortization period.
Use this template to forecast the growth in value of your 401K plan and to project the monthly income you will receive from the plan upon retirement. It also compares the wealth accumulation in the 401K plan in contrast to the growth of a taxable savings plan. The forecasted monthly income during retirement is pre-tax. After tax retirement income will depend on the marginal tax rates upon retirement.
