General Landlording & Rental Properties
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Tax, SDIRAs & Cost Segregation
presented by
1031 Exchanges
presented by
Real Estate Classifieds
Reviews & Feedback
Updated almost 11 years ago,
How to word prepayment penalty when borrowing
I've negotiated a purchase with 10% down and seller carry back for the rest. Seller agreed to purchase price and terms. Loan is for 120 days and the seller wants to be guaranteed the 120 days of interest (6%) regardless of payoff date. Can anybody help me on the wording for the note? It's too late to ask my escrow officer and I need to get this out asap. Is that called a prepayment penalty or is there some other way to word the guaranteed interest?