Florida Promissory Note

[whattodo2008]

What is the name of your state?Florida

I am under contract for a Promissory Note when I purchased a business. I am one and a half years into the repayment of the contract. I would like to just pay it off.
1. Are Promissory Note amortrized in Florida
2. Can I pay the balance of the note off at any point on the loan? ie not the full projected balance (principle & interest) at the end of the contract
3. The contract states "This note may be prepaid, in whole or in part, without penalty, at any time prior to maturity."

Best Regards.

 

[quincy]

What is the name of your state?Florida

I am under contract for a Promissory Note when I purchased a business. I am one and a half years into the repayment of the contract. I would like to just pay it off.
1. Are Promissory Note amortrized in Florida
2. Can I pay the balance of the note off at any point on the loan? ie not the full projected balance (principle & interest) at the end of the contract
3. The contract states "This note may be prepaid, in whole or in part, without penalty, at any time prior to maturity."

Best Regards.

The contract dictates the terms. What does the contract say about interest?

 

[Zigner]

Line 3 gives the answer.

 

[quincy]

Line 3 gives the answer.

Would interest be considered a “penalty” though? I think getting a payoff quote would be the best way to determine that.

 

[adjusterjack]

I am under contract for a Promissory Note

Use this calculator, print out an amortization schedule, circle the Prin Bal where you are now. Send a check.

Mortgage/Loan Calculator with Amortization Schedule (bretwhissel.net)

Easy peasey.

 

[quincy]

Use this calculator, print out an amortization schedule, circle the Prin Bal where you are now. Send a check.

Mortgage/Loan Calculator with Amortization Schedule (bretwhissel.net)

Easy peasey.

Getting a payoff quote is a safer way to operate.

 

[adjusterjack]

Getting a payoff quote is a safer way to operate.

Disagree. Suppose I ask for a payoff and the creditor says $5500 and my amortization says $5000. That's a big enough dispute for the creditor to go to court on.

OTOH, I send a check for $5000 and the creditor wants another $500. Well, $500 is not likely worth going to court on and can be easily negotiated.

We can agree to disagree, but my vote is just send the check based on the amortization schedule.

 

[quincy]

Disagree. Suppose I ask for a payoff and the creditor says $5500 and my amortization says $5000. That's a big enough dispute for the creditor to go to court on.

OTOH, I send a check for $5000 and the creditor wants another $500. Well, $500 is not likely worth going to court on and can be easily negotiated.

We can agree to disagree, but my vote is just send the check based on the amortization schedule.

We will disagree, then. You never want to open yourself up to a legal action when a legal action can be avoided entirely.

 

[Zigner]

Getting a payoff quote is a safer way to operate.

To me, it depends on who the lender is. If it's a private lender, I'd send the check, as Jack suggests. If it's a corporate lender (e.g. a bank), then I'd get the payoff amount.

 

[quincy]

To me, it depends on who the lender is. If it's a private lender, I'd send the check, as Jack suggests. If it's a corporate lender (e.g. a bank), then I'd get the payoff amount.

I suppose the lender could make a difference. A personal review of the promissory note and all of its terms is probably more important, though.

 

[LdiJ]

What is the name of your state?Florida

I am under contract for a Promissory Note when I purchased a business. I am one and a half years into the repayment of the contract. I would like to just pay it off.
1. Are Promissory Note amortrized in Florida
2. Can I pay the balance of the note off at any point on the loan? ie not the full projected balance (principle & interest) at the end of the contract
3. The contract states "This note may be prepaid, in whole or in part, without penalty, at any time prior to maturity."

Best Regards.

If that is what it says, then yes, you can pay it off the principal at any time. You would not have to pay off the interest that would have accrued in the future. That is actually how financing normally works.

However, how does your promissory note read as regards to interest and principal? It should have contained an amortization table showing interest and principal, but if it did not, it should outline an interest rate and how the interest accrues. You may need to consult an accountant to help you determine the current principal balance if there is no amortization table..

 

[zddoodah]

Are Promissory Note amortrized in Florida

I don't understand the question. Amortization is a process by which one computes equal payments for a loan that is to be repaid in installments. What are you talking about and why does it matter?

Can I pay the balance of the note off at any point on the loan?

The contract states "This note may be prepaid, in whole or in part, without penalty, at any time prior to maturity."

You've answered your own question.

If I were you, I'd put something in writing to the lender along the lines of: "I wish to pay off the full balance of the loan. Based on my calculations, the full balance as of mm/dd/yyyy is/will be $xxx.xx. Please confirm your agreement to that amount in writing."