Need Help on a Seller Financing Promissory Note

[Brian Mitchell]

Hi All,

I have a deal under contract which will encompass some seller held financing.  Both myself and the seller are looking to have something on paper and are trying to work this out together.  Below is my draft but feel I should add more language to the interest rate section to protect myself if I pay off the loan early.  Anything else I may have missed?

                                                                                                     PROMISSORY NOTE

2/9/2019

Total Amount Borrowed: $25,000

XYZ, LLC promises to pay John Doe TWENTY FIVE THOUSAND DOLLARS 00/100 ($25,000), 60 months or sooner with an interest rate of 5%.

MONTHLY PAYMENT/PREPAYMENT PENALTY:  It is generally understood that XYZ, LLC will make monthly payments to John Doe  at a minimum of $471.78.  There will be NO Pre Payment Penalty at any time of XYZ, LLC chooses to pay any extra payments to the loan as to pay it down the balance sooner, or pay the loan in full prior to the end of the 60 month term.

Signatures...

Note: I may decide to make the seller second on my mortgage, however that is TBD.  Certainly, wording around that would need to be there if the seller requires it.

Any suggestions?  Additions?

Thank you!

Brian