Note With Balloon Payment In Wake
Category:
State:
Multi-State
County:
Wake
Control #:
US-00425BG
Format:
Word;
Rich Text
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Description
A Balloon Note is a Promissory Note that has one large payment (the balloon payment) that is due upon maturity. A balloon note will often have the advantage of a very low interest rate, thus requiring little capital outlay during the life of the loan. The major problem with such a loan is that the borrower needs to be self-disciplined in preparing for the large balloon payment due when the loan matures. Of course refinancing the note upon maturity is always a possibility.
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A Promissory Note with Balloon Payments is a loan contract that enables a lender set loan terms with one or more larger payments at the end. A balloon payment is a large payment due at the end of a mortgage.If you have a partially amortizing loan, you no doubt have a balloon payment awaiting you at maturity. A balloon payment is a large one-time amount due at the end of a loan. Mortgages, auto loans, and business loans have been structured for balloon payments. Clients interested in lending money to financially assist a family member should consider making an intrafamily loan. Here, we outline basic information. Balloon payments compensate for monthly payments and interest during the repayment period that are too low to repay the loan entirely.