Balloon Mortgage Promissory Note

Designate a mortgage as a wraparound mortgage by attaching this USA Wraparound Mortgage Rider to the mortgage form.

• The Rider clarifies that the new mortgage is subordinate to the original first mortgage on the property.
• A wraparound mortgage is often used as a form of seller financing. It enables buyers who may not qualify for a conventional mortgage to purchase a home at a higher interest rate but with a smaller downpayment.
• The mortgagor (buyer) will make payments under the new mortgage to the mortgagee (seller), who will continue to pay the original mortgage.
• The seller has the same rights under a wraparound mortgage that a mortgage lender has under a conventional mortgage, including the right to foreclose.
• This Rider can be used in any State in which wraparound mortgages are allowed by law.

Prepare a Wraparound Mortgage Security Agreement with this comprehensive ready-to-use template for US mortgages.

• The wraparound mortgage (also called a piggyback mortgage) is a second mortgage with a face value of both the amount it secures and the balance due under the first mortgage on the subject property.
• The wraparound mortgage is subordinate to the first mortgage.
• The borrower makes payment to the new mortgagee (lender or seller) based on the face value of the wrap-around mortgage, and the new mortgagee in turn makes the monthly payments to the original mortgagee.
• The borrower must ask permission of the mortgagee prior to making significant alterations to the mortgaged property.
• Any agreement between the parties pursuant to the mortgage shall be superior to the rights of the holder of any intervening lien or encumbrance.
• Any award or compensation payable pursuant to condemnation proceedings will be payable to the mortgagee.

Write up a Residential Mortgage to secure repayment of a home purchase loan with this fully editable template for Ohio mortgage lenders.

• Mortgage payments will be made in regular periodic instalments of blended principal and interest.
• Unpaid interest becomes part of the principal and bears interest at the mortgage rate.
• The mortgagor must pay all taxes and levies assessed against the property.
• The mortgagor must keep the property insured in an amount and to an extent approved by the mortgagee.
• Contains an acceleration upon default provision, which states that if the mortgagor defaults in any of its obligations, the entire amount of the indebtedness will become immediately due and payable, and the lender may foreclose and sell the property.

This promissory note template is made by a borrower to secure an interest-free loan to be repaid by regular payments.

• The Promissory Note allows the borrower to repay the loan in monthly, weekly, or bi-weekly payments.
• No interest will be charged on the outstanding loan balance. The borrower will only be repaying the principal amount.
• This is a generic legal form which can be used anywhere.

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