A Balloon Payment Promissory Note is a written document that specifies the terms, rights, and obligations that apply to a loan. The party making the loan is the "Lender" and the party borrowing the loan funds is the "Borrower." The Note includes provisions regarding the amount of the loan, the interest rate, the date by which the loan must be repaid, and the amount of the payments. It may also include other general provisions that are important in enforcing the payment of the loan. This program provides an amortization table based on your selection of the payment frequency. The first section of the Promissory Note document is a "financial worksheet." This worksheet can be used to enter the basic financial information. A Balloon Payment Promissory Note gives Borrowers an opportunity to make lower installment payments with a lump sum payment payable on the Due Date. The balloon payment "makes up" for the decreased installment payments. A financial calculator automatically computes the payment amount, based on the entered variables (such as interest rate, principal, and payment frequency). Further, the user can play "what if" by changing these variables to determine how such changes would affect the amount of the payment. For example, the monthly payment will automatically increase if the interest rate is increased. The information from the calculator is automatically transferred to the appropriate section of the Note. |