Free Promissory Note With Balloon Payments
Promissory Notes with Balloon Payment are used when a lender makes a loan based on the borrower making a final large (balloon) payment at the end of the note's term. This note sets out the amount of required monthly payments, the note's term and the amount of the balloon payment.
Disclaimer:This was not drafted by an attorney & should not be used as a legal document.
With Balloon Payments
$ _________ (Amount) _________ ____, 20__ (Date)
FOR VALUE RECEIVED, the undersigned ______________, (the “Maker”) hereby promises to pay to the order of ______________________ (the “Payee”) at _________________ (Payee’s Address) the whole principal of _____________ dollars payable upon as provided in the Payment Schedule.
The Maker acknowledges that he/she has full knowledge of the principal amount as well as the terms and conditions set forth in this note.
1. Currency. All payments of principal, interest and penalties (if any) shall be collected in funds in lawful currency of the United States of America.
2. Principal. The total principal amount for the sale of the above mentioned property is $__________, (“Principal”).
3. Interest Rate. Interests will be charged on uncured Principal until such Principal has been paid in full. Maker shall pay interest at a yearly rate of ____%.
4. Balloon Payments. Payments shall be____% of the total sum, totaling principal and interest as provided in the Payment Schedule
5. Payment Term. Payment shall be made in the amount of $_____ per month. Maker shall continue to make monthly payments until all principal, interests and penalties (if any) has been satisfactory paid in full in accordance with the Payment Schedule.
6. Prepayment. Maker shall have the option to prepay this Note, in full or in part, at any time without penalty.
7. Default. In the event of default by the Maker, all reasonable legal fees collection and enforcement charges to the extent permissible by law.
The Undersigned hereby warrants his/hers full authority to enter into this Promissory Note.
Signed at _____________________________ on this ____ day of _____________, 20__.