Mortgage payments after first renewal?

Question

Hi Everyone,
I was wondering that what will i have to pay once my current mortgage comes for renewal after the first term of 5 yrs. To be specfic, currently i have a locked interest rate for 5 yrs. After the term is over i would have to shop around for a good rate. Assuming that i get the same rate and i lock in for next 5 yrs. What will be my mortgage payments keeping in mind that i have paid out a portion of the capital. Will the new payment be based on the new outstanding amount. If so then for how long will be amortised for. I am confused. In the back of my head i know that the mortgage is amortised for 25 yrs and the principal payments wont change only the interest part changes. I want to know the logic behind the calculation .......................I may be wrong. Please help with calculation.

Thx for your time guys

Answer 1

Try to get the new amortization for a minimum of 5 less years each time your "balloon" is due. Otherwise you will never pay back the loan.