Balloon Loan CalculatorA balloon loan can be an excellent option for many borrowers. Aballoon loan is usually rather short, with a term of three to fiveyears, but the payment is based on a term of up to 15 years. Thereis, however, a risk to consider. At the end of your loan term, youwill need to pay off your outstanding balance. This usually meansyou must refinance your loan or convert the balloon loan to atraditional loan at the current interest rates.