For some types of loans, for instance Flexible mortgages, it is possible to borrow money against it for other purposes,
such as home improvements.
When you put in an account adjustment, you may find that the balloon payment at the end of
the loan gets adjusted to a value you were not expecting, and subsequently needs to be reset to the previous, or a new value.
Resetting this balloon payment may cause other terms of the loan to change, such as the length of the loan or the
This technique can be used to change
the other important values (Interest Rate, Loan Length, Principal plus Interest) too.
Keywords: Principal, Interest, Loan, Mortgage, Calculation, Balloon Amount