# Balloon Mortgage Agreement
**This Balloon Mortgage Agreement ("Agreement") is made and entered into as of the ___ day of __________, 20___, by and between:**
**Lender:**
Name: ______________________________
Address: ___________________________
City: ______________________________
State: _____________
Zip Code: _______________
**Borrower:**
Name: ______________________________
Address: ___________________________
City: ______________________________
State: _____________
Zip Code: _______________
## 1. Loan Amount
The Lender agrees to lend the Borrower the principal sum of **$____________** (the "Loan Amount").
## 2. Interest Rate
The Loan Amount shall bear interest at the annual rate of **____%**. Interest shall be calculated on the unpaid balance and shall be payable in accordance with Section 4 below.
## 3. Loan Term
The term of this Loan shall be for a period of **____ years** from the date of this Agreement.
## 4. Payment Schedule
- The Borrower agrees to make monthly payments of principal and interest as follows:
- **Monthly Payment Amount:** $_______________
- Payments are due on the ___ day of each month, beginning on the ___ day of __________, 20___, and continuing until the ___ day of __________, 20___.
## 5. Balloon Payment
At the end of the Loan Term, a **Balloon Payment** of the remaining principal balance shall be due and payable in full on or before the ___ day of __________, 20___.
## 6. Prepayment
The Borrower shall have the right to prepay the outstanding balance of the Loan in whole or in part at any time without penalty.
## 7. Late Payment
If any installment payment is not received by the Lender within **___ days** of its due date, a late fee of **$_____** shall be assessed.
## 8. Default
If the Borrower fails to make any payment when due or otherwise defaults under the terms of this Agreement, the Lender may declare the entire unpaid principal balance and accrued interest immediately due and payable.
## 9. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of _____________.
## 10. Miscellaneous
- This Agreement constitutes the entire Agreement between the parties and supersedes all prior understandings.
- Any modification to this Agreement must be in writing and signed by both parties.
**IN WITNESS WHEREOF**, the parties have executed this Balloon Mortgage Agreement as of the date first above written.
**LENDER:**
______________________________
**Signature**
______________________________
**Print Name**
______________________________
**Date**
**BORROWER:**
______________________________
**Signature**
______________________________
**Print Name**
______________________________
**Date**
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**Note:** This is a template for a Balloon Mortgage Agreement. It is recommended that both parties seek the advice of legal counsel prior to executing any binding agreements.