the final payment
short
The calculator compares between a outstanding loan, where you pay monthly interest and the principal is repaid at the end, and a full balloon, where the payment is deferred and the interest accumulates. It shows the monthly payment, the total interest and the final payment, to examine whether the source of future repayment really covers the obligation.
interim financing
How much will the balloon really cost at the end of the period?
Compare between monthly interest payment and full deferment, and see in advance the amount that will be required for repayment.
Monthly payment during the period
Total estimated interest
Total payments
How the calculator works
In the prominent route, the calculator multiplies the principal with the monthly interest to calculate the interest payment, leaving the principal to be paid at the end. In a full balloon, he assumes that the interest is accrued every month and calculates the final payment according to monthly compound interest. The result is a planning scenario and not a credit offer.
What is important to check before choosing a balloon or bridge
You need to define a source of repayment, a date and a conservative amount. We check what happens in the event of a delay in the sale of the property, whether there is linkage, how the interest rate can change and what the repayment costs are. The Bank of Israel warned against the risk of deferred payment transactions and balloon or balloon loans subsidized by entrepreneurs.
Ministry of Finance explanation on types of mortgages · Bank of Israel notice on the risks of deferred payment transactions
Frequently asked questions about balloon and mediation
What is the difference between a balloon, a balloon and a bridging loan?
In Bolt, you usually pay the interest every month and the principal at the end. In a full balloon, the interest can also be deferred, and it may accumulate until maturity. A bridging loan is interim financing for a limited period, for example until the sale of a property. The names and conditions vary between offers, so check the actual disposal schedule.
Who might a balloon loan be suitable for?
A balloon loan may be suitable when there is a defined and reasonable source of future repayment, such as proceeds from the sale of an asset or money whose release date is known. A low monthly repayment does not make the loan cheap. You need to verify in advance how the fund will be repaid and what will happen if the future source is delayed.
Does the calculator include linking to the index?
not. The calculator shows a non-indexed shekel scenario according to a fixed annual interest rate for comparison. If the loan is linked to the index, the principal balance and the final payment may increase. Check the bank's proposal for the linkage mechanism, interest rate changes, fees and early repayment conditions.
without obligation
One call. thirty minutes free of charge
We will understand where you stand and tell you straight away if you have anything to save. If not, we'll say that too.
We do not receive commission from any bank. never.
