A 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. Payback Options
This program permits a wide variety of payback options, including the use of a balloon payment. In addition, the program provides an amortization table based on your selection of the payment frequency. You may also select a variety of optional paragraphs. The first section of the Promissory Note document is a "financial worksheet." This worksheet can be used to enter the basic financial information and to choose whether the Note will be paid: "In installments of interest and principal" - interest and principal will be due in regular payments similar to monthly mortgage payments. "In installments of interest only" - interest will be due in regular payments, but the principal will not be due until a future date that is specified in the Note. "In full on a specific date" - no monthly payments; rather, all of the principal and interest will be due on a future date that is specified in the Note. "On Demand" - in other words, payable immediately at the request of the Lender. If the Promissory Note will be repaid in "installments of interest and principal," 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. |