Balloon Secured Note Addendum and Rider to Mortgage, Deed of Trust or Security Agreement
About this form
The Balloon Secured Note Addendum and Rider to Mortgage, Deed of Trust or Security Agreement is a legal document that grants the borrower a conditional right to refinance the balloon payment at the end of the loan term. This addendum is particularly useful for borrowers seeking the flexibility to adjust their loan terms under specific conditions, which differentiates it from standard mortgage agreements that do not offer such options.
What’s included in this form
- Conditional right to refinance: Allows the borrower to refinance at loan maturity under specified conditions.
- Requirements for refinancing: Details the conditions that must be met to qualify for refinancing, including current payments and property status.
- Calculation of the new note rate: Outlines the method for determining the new interest rate if refinancing is executed.
- Payment amount calculation: Describes how the new monthly payment is calculated based on the new loan terms.
- Process for exercising the option: Provides a timeline and requirements for notifying the lender about refinancing.
Common use cases
This form is particularly beneficial for borrowers who are approaching the maturity date of a balloon note and wish to refinance their loan. Use this addendum when you want to secure an option for refinancing if you maintain good payment history, occupy the property, and meet other established conditions. It is an effective tool for avoiding potential financial strain at the end of a balloon loan term.
Intended users of this form
- Homeowners with a balloon mortgage seeking to refinance their loan.
- Borrowers who have consistently made payments and meet specific refinancing criteria.
- Lenders looking to formalize the refinancing option within the loan agreement.
Steps to complete this form
- Identify the parties involved by including the names of the borrower and lender.
- Specify the property that is subject to the mortgage or security instrument.
- Enter the original loan details, including the maturity date and initial interest rate.
- Review and ensure all conditions for refinancing are listed and understood.
- Both parties should sign and date the addendum to finalize the agreement.
Is notarization required?
This form must be notarized to be legally valid. US Legal Forms provides secure online notarization powered by Notarize, allowing you to complete the process through a verified video call.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Typical mistakes to avoid
- Failing to read and understand the conditions for refinancing.
- Missing deadlines for notifying the lender about the intent to refinance.
- Not ensuring that payment records are up-to-date before attempting to refinance.
Benefits of using this form online
- Convenience of accessing and completing the form from any location.
- Editability allows borrowers to customize terms according to their needs.
- Reliable access to legal resources that ensure compliance with current regulations.
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FAQ
A mortgage rider is simply an appendix to the mortgage document. It's main purpose is to include special terms, conditions and situations affecting the loan that are not present in the main mortgage document. Lenders use pre-printed mortgage documents when preparing the loan.
Balloon Riders If you can't afford to pay your final balloon mortgage balance, a balloon rider gives you the option to refinance or modify the mortgage instead and keep making monthly payments. If you use the balloon rider to refinance or modify the mortgage, you will have a new due date and interest rate.
