A balloon payment is the final payment needed to satisfy the payment of the entire principal amount due on a note, if different from the monthly payment. It is a lump-sum principal payment due at the end of a loan. For example, a loan may have monthly payments as if the principal amount were amortized over thirty (30), but a balloon payment could be due at the end of fifteen (15) years, at which time the loan would have to be paid in full or refinanced.
Some states may require that the balloon mortgage clause appear in bold or upper case typeface. It is placed at the top of the first page and again directly above the signature lines. The clause might be required when the final payment or principal balance due at maturity is greater than twice the amount of the regular monthly or periodic payment. A different statutory clause may be required when the note has a variable or adjustable interest rate. Failure to include the clause may result in an automatic extension of the maturity date of the mortgage.
A Hillsborough Florida Commercial Mortgage as Security for Balloon Promissory Note is a type of financial agreement typically used in commercial real estate transactions. It involves the borrower obtaining a loan from a lender, and as security for the loan, the borrower grants a mortgage on their commercial property located in Hillsborough County, Florida. This mortgage serves as collateral for the loan. Keywords: Hillsborough Florida, Commercial Mortgage, Security, Balloon Promissory Note, financial agreement, commercial real estate, borrower, lender, loan, mortgage, collateral, Hillsborough County. Different types of Hillsborough Florida Commercial Mortgage as Security for Balloon Promissory Note may include: 1. Fixed-Rate Commercial Mortgage: This type of promissory note sets a fixed interest rate for the duration of the loan term. It provides stability to borrowers as the interest rate remains consistent, allowing them to plan their finances accordingly. 2. Variable-Rate Commercial Mortgage: In contrast to a fixed-rate mortgage, a variable-rate commercial mortgage has an interest rate that fluctuates over time. The interest rate is usually tied to a specific index such as the prime rate or LIBOR, and it can change periodically based on market conditions. 3. Interest-Only Balloon Promissory Note: With this type of commercial mortgage, the borrower is only required to pay the interest on the loan during the initial period, usually for a specified number of years. At the end of the term, a lump sum payment (balloon payment) is due, which covers the principal amount borrowed. 4. Amortizing Balloon Promissory Note: In this scenario, the borrower makes regular monthly payments, which include both the principal and interest portions of the loan. However, the loan term is shorter than the time needed to fully amortize the principal balance, resulting in a balloon payment at the end of the term to pay off the remaining amount. 5. Non-Recourse Commercial Mortgage: This type of mortgage limits the lender's recourse to solely the collateral property. In the event of default, the lender can foreclose on the property but cannot seek additional compensation from the borrower's personal assets. 6. Recourse Commercial Mortgage: Unlike non-recourse mortgages, recourse commercial mortgages hold the borrower personally liable for the full repayment of the loan. In the event of default and subsequent foreclosure, the lender can seize the collateral property and pursue the borrower's other assets to recover any remaining debts. Keywords: Fixed-Rate Commercial Mortgage, Variable-Rate Commercial Mortgage, Interest-Only Balloon Promissory Note, Amortizing Balloon Promissory Note, Non-Recourse Commercial Mortgage, Recourse Commercial Mortgage.A Hillsborough Florida Commercial Mortgage as Security for Balloon Promissory Note is a type of financial agreement typically used in commercial real estate transactions. It involves the borrower obtaining a loan from a lender, and as security for the loan, the borrower grants a mortgage on their commercial property located in Hillsborough County, Florida. This mortgage serves as collateral for the loan. Keywords: Hillsborough Florida, Commercial Mortgage, Security, Balloon Promissory Note, financial agreement, commercial real estate, borrower, lender, loan, mortgage, collateral, Hillsborough County. Different types of Hillsborough Florida Commercial Mortgage as Security for Balloon Promissory Note may include: 1. Fixed-Rate Commercial Mortgage: This type of promissory note sets a fixed interest rate for the duration of the loan term. It provides stability to borrowers as the interest rate remains consistent, allowing them to plan their finances accordingly. 2. Variable-Rate Commercial Mortgage: In contrast to a fixed-rate mortgage, a variable-rate commercial mortgage has an interest rate that fluctuates over time. The interest rate is usually tied to a specific index such as the prime rate or LIBOR, and it can change periodically based on market conditions. 3. Interest-Only Balloon Promissory Note: With this type of commercial mortgage, the borrower is only required to pay the interest on the loan during the initial period, usually for a specified number of years. At the end of the term, a lump sum payment (balloon payment) is due, which covers the principal amount borrowed. 4. Amortizing Balloon Promissory Note: In this scenario, the borrower makes regular monthly payments, which include both the principal and interest portions of the loan. However, the loan term is shorter than the time needed to fully amortize the principal balance, resulting in a balloon payment at the end of the term to pay off the remaining amount. 5. Non-Recourse Commercial Mortgage: This type of mortgage limits the lender's recourse to solely the collateral property. In the event of default, the lender can foreclose on the property but cannot seek additional compensation from the borrower's personal assets. 6. Recourse Commercial Mortgage: Unlike non-recourse mortgages, recourse commercial mortgages hold the borrower personally liable for the full repayment of the loan. In the event of default and subsequent foreclosure, the lender can seize the collateral property and pursue the borrower's other assets to recover any remaining debts. Keywords: Fixed-Rate Commercial Mortgage, Variable-Rate Commercial Mortgage, Interest-Only Balloon Promissory Note, Amortizing Balloon Promissory Note, Non-Recourse Commercial Mortgage, Recourse Commercial Mortgage.
