I see some people using very simple forms but meanwhile I'm contacting attorneys and paying $600 for a contract fit to our needs.I'm looking for any advice or information I should be directing myself towards.

Its simple , go to sba.com  economic disaster 

Consult an attorney for clarity, but I would think that a simple option to purchase would be voided with her passing.

@Cole DeLucas the answer to your first question is a simple math question.

This fee simple unit was available and making $3-4k per month in gross rents.

Simple way to think of it is with the additional principle, would you rather invest it and make "x" (x being whatever return you can generate through RE, stock..etc) or use it to minimize the 3-4% interest rate that's locked.

Simple as that :) 

I only have one property and i live in one half so simple is key.

The more monthly payments you have, the less you can borrow - plain and simple.

I've never known a private lender to provide an amortized loan, they are typically simple interest, with interest only payments made monthly, or accumulated to the end of the loan.