A Hawaii Promissory Note — Balloon Note is a legally binding document that outlines the terms and conditions of a loan between a lender and a borrower in Hawaii. This type of promissory note is known as a balloon note because it includes a large, final payment (balloon payment) that is due at the end of the loan term. The purpose of a balloon note is to allow borrowers to make smaller monthly payments over the course of the loan term and then pay off the remaining balance in one lump sum at the end. This can be especially beneficial for borrowers who anticipate having a significant amount of money available at the end of the loan term, such as from the sale of property or an expected inheritance. A Hawaii Promissory Note — Balloon Note typically includes essential information such as the names and addresses of the lender and borrower, the loan amount, the interest rate, the repayment schedule, and the duration of the loan term. It also specifies the date when the balloon payment is due and may include any penalties or fees applicable for late payments or defaults. Two common types of Hawaii Promissory Note — Balloon Notes are: 1. Fixed-Rate Balloon Notes: In this type of balloon note, the interest rate remains fixed throughout the loan term, ensuring that the borrower's monthly payments remain constant. The final balloon payment is calculated based on the outstanding balance at the end of the loan term. 2. Adjustable-Rate Balloon Notes: With this type of balloon note, the interest rate can fluctuate periodically based on market conditions. As a result, the borrower's monthly payments may vary over time. The final balloon payment is typically recalculated at the end of each adjustment period to reflect the outstanding balance. It is crucial for both lenders and borrowers to thoroughly understand the terms and obligations outlined in a Hawaii Promissory Note — Balloon Note before signing it. Seeking legal advice and properly reviewing the document can help ensure that both parties are protected and aware of their rights and responsibilities.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.