Private Money Loan Agreement

PROMISSORY NOTE AND SECURITY AGREEMENT
This Promissory Note ("Note") and Security Agreement is made and entered into as of [Date], by and between [Borrower Name], an individual ("Borrower"), and [Lender Name], an individual ("Lender").
1. LOAN AMOUNT AND TERMS
(a) Principal Amount: Lender hereby lends to Borrower the sum of $[Loan Amount] ("Loan Amount"), which Borrower agrees to borrow and repay according to the terms and conditions set forth herein.
(b) Interest Rate: The Loan Amount shall bear interest at the fixed rate of [X]% per annum, calculated on the outstanding principal balance.
(c) Loan Term: The Loan shall be due and payable in full on [Maturity Date], which is [X] months from the date hereof ("Maturity Date").
(d) Funding Date: The Loan shall be funded on or about [Funding Date], at which time Borrower shall execute this Note and the Security Agreement.
2. PAYMENT SCHEDULE
(a) Monthly Payments: Beginning on [First Payment Date], and continuing on the first day of each month thereafter until the Maturity Date, Borrower shall pay to Lender the sum of $[Monthly Payment Amount] ("Monthly Payments"), representing [interest only/amortized payments].
(b) Balloon Payment: In addition to monthly payments, Borrower shall pay to Lender a balloon payment in the amount of $[Balloon Payment Amount] on the Maturity Date.
(c) Payment Application: All payments shall be applied first to accrued interest, then to principal, unless otherwise directed by Lender in writing.
(d) Payment Location: All payments shall be made payable to [Lender Name] and delivered to [Payment Address], or to such other person or address as Lender may designate in writing.
3. ORIGINATION FEE
Borrower shall pay to Lender an origination fee in the amount of [X]% of the Loan Amount (i.e., $[Origination Fee Amount]) at the time of funding. This fee shall be deducted from the Loan Amount at closing, with the net proceeds advanced to Borrower.
4. SECURITY INTEREST
(a) Deed of Trust: To secure the repayment of this Note, Borrower hereby grants, assigns, and transfers to Lender a [First/Second] Deed of Trust, mortgage, or security interest in and to the real property located at [Property Address], [City], [State] [Zip], together with all improvements, appurtenances, and fixtures ("Collateral"). A Deed of Trust or Mortgage securing this Note shall be recorded in the Official Records of [County] County, [State].
(b) Title and Insurance: Borrower represents and warrants that Borrower has good and marketable title to the Collateral, free and clear of liens (except as disclosed to Lender), and shall maintain a policy of hazard insurance on the Collateral in favor of Lender as loss payee, with minimum coverage of 100% of the replacement value.
5. PREPAYMENT

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