Establishing secure connection…Loading editor…Preparing document…

Multistate Balloon Rider Single Family Fannie Mae Uniform Instrument Form

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

BALLOON RIDER
(CONDITIONAL RIGHT TO REFINANCE)

THIS BALLOON RIDER is made this day of and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the “Security Instrument") of the same date given by the undersigned (“Borrower”) to secure Borrower's Note to ("Lender") of the same date and covering the property described in the Security Instrument and located at:

[Property Address]

The interest rate stated on the Note is called the "Note Rate." The date of the Note is called the "Note Date." I understand Lender may transfer the Note, Security Instrument and this Rider. Lender or anyone who takes the Note, the Security Instrument and this Rider by transfer and who is entitled to receive payments under the Note is called the "Note Holder."

ADDITIONAL COVENANTS. In addition to the covenants and agreements in the Security Instrument, Borrower and Lender further covenant and agree as follows (despite anything to the contrary contained in the Security Instrument or the Note):

1. CONDITIONAL RIGHT TO REFINANCE

At the Maturity Date of the Note and Security Instrument (the "Maturity Date"), I will be able to obtain a new loan ("New Loan") with a new Maturity Date of and with an interest rate equal to the "New Note Rate” determined in accordance with Section 3 below if all the conditions provided in Section 2 and 5 below are met (the “Conditional Refinancing Option”). If those conditions are not met, I understand that the Note Holder is under no obligation to refinance or modify the Note, or to extend the Maturity Date, and that I will have to repay the Note from my own resources or find a lender willing to lend me the money to repay the Note.

2. CONDITIONS TO OPTION

If I want to exercise the Conditional Refinancing Option at maturity, certain conditions must be met as of the Maturity Date. These conditions are: (a) I must still be the owner and occupant of the property subject to the Security Instrument (the “Property”); (b) I must be current in my monthly payments and cannot have been more than 30 days late on any of the 12 scheduled monthly payments immediately preceding the Maturity Date; (c) no lien against the Property (except for taxes and special assessments not yet due and payable) other than that of the Security Instrument may exist; (d) the New Note Rate cannot be more than five percentage points above the Note Rate; and (e) I must make a written request to the Note Holder as provided in Section 5 below.

3. CALCULATING THE NEW NOTE RATE

The New Note Rate will be a fixed rate of interest equal to Fannie Mae's required net yield for 30-year fixed rate mortgages subject to a 60-day mandatory delivery commitment, plus one-half of one percentage point (0.5%), rounded to the nearest one-eighth of one percentage point (0.125%) (the “New Note Rate”). The required net yield shall be the applicable net yield in effect on the date and time of day that the Note Holder receives notice of my election to exercise the Conditional Refinancing Option. If this required net yield is not available, the Note Holder will determine the New Note Rate by using comparable information.

4. CALCULATING THE NEW PAYMENT AMOUNT

Provided the New Note Rate as calculated in Section 3 above is not greater than five percentage points above the Note Rate and all other conditions required in Section 2 above are satisfied, the Note Holder will determine the amount of the monthly payment that will be sufficient to repay in full (a) the unpaid principal, plus (b) accrued but unpaid interest, plus (c) all other sums I will owe under the Note and Security Instrument on the Maturity Date (assuming my monthly payments then are current, as required under Section 2 above), over the term of the New Note at the New Note Rate in equal monthly payments. The result of this calculation will be the amount of my new principal and interest payment every month until the New Note is fully paid.

5. EXERCISING THE CONDITIONAL REFINANCING OPTION

The Note Holder will notify me at least 60 calendar days in advance of the Maturity Date and advise me of the principal, accrued but unpaid interest, and all other sums I am expected to owe on the Maturity Date. The Note Holder also will advise me that I may exercise the Conditional Refinancing Option if the conditions in Section 2 above are met. The Note Holder will provide my payment record information, together with the name, title and address of the person representing the Note Holder that I must notify in order to exercise the Conditional Refinancing Option. If I meet the conditions of Section 2 above, I may exercise the Conditional Refinancing Option by notifying the Note Holder no later than 45 calendar days prior to the Maturity Date. The Note Holder will calculate the fixed New Note Rate based upon Fannie Mae's applicable published required net yield in effect on the date and time of day notification is received by the Note Holder and as calculated in Section 3 above. I will then have 30 calendar days to provide the Note Holder with acceptable proof of my required ownership, occupancy and property lien status. Before the Maturity Date, the Note Holder will advise me of the new interest rate (the New Note Rate), new monthly payment amount and a date, time and place at which I must appear to sign any documents required to complete the required refinancing. I understand the Note Holder will charge me a $250 processing fee and the costs associated with updating the title insurance policy, if any.

BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Balloon Rider.

(Seal)
(Seal)
(Seal) [Sign Original Only]

BALLOON NOTE ADDENDUM
(CONDITIONAL RIGHT TO REFINANCE)

THIS BALLOON NOTE ADDENDUM is made this day of and is incorporated into and shall be deemed to amend and supplement the Balloon Note made by the undersigned (“Borrower') in favor of ("Lender") and dated as of even date herewith (the "Note"). The interest rate stated on the Note is called the "Note Rate." The date of the Note is called the "Note Date."

I understand Lender may transfer the Note, the related Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") and this Addendum. Lender or anyone who takes the Note, Security Instrument and this Addendum by transfer and who is entitled to receive payments under the Note is called the “Note Holder.”

ADDITIONAL COVENANTS. In addition to the covenants and agreements in the Security Instrument, Borrower and Lender further covenant and agree as follows (despite anything to the contrary contained in the Security Instrument or the Note):

1. CONDITIONAL RIGHT TO REFINANCE

At the maturity date of the Note and Security Instrument (the "Maturity Date"), I will be able to obtain a new loan ("New Loan") with a new Maturity Date of and with an interest rate equal to the "New Note Rate” determined in accordance with Section 3 below if all the conditions provided in Section 2 and 5 below are met (the “Conditional Refinancing Option”). If those conditions are not met, I understand that the Note Holder is under no obligation to refinance or modify the Note, or to extend the Maturity Date, and that I will have to repay the Note from my own resources or find a lender willing to lend me the money to repay the Note.

2. CONDITIONS TO OPTION

If I want to exercise the Conditional Refinancing Option at maturity, certain conditions must be met as of the Maturity Date. These conditions are: (a) I must still be the owner and occupant of the Property subject to the Security Instrument (the “Property”); (b) I must be current in my monthly payments and cannot have been more than 30 days late on any of the 12 scheduled monthly payments immediately preceding the Maturity Date; (c) no lien against the Property (except for taxes and special assessments not yet due and payable) other than that of the Security Instrument may exist; (d) the New Note Rate cannot be more than five percentage points above the Note Rate; and (e) I must make a written request to the Note Holder as provided in Section 5 below.

3. CALCULATING THE NEW NOTE RATE

The New Note Rate will be a fixed rate of interest equal to Fannie Mae's required net yield for 30-year fixed rate mortgages subject to a 60-day mandatory delivery commitment, plus one-half of one percentage point (0.5%), rounded to the nearest one-eighth of one percentage point (0.125%) (the “New Note Rate”). The required net yield shall be the applicable net yield in effect on the date and time of day that the Note Holder receives notice of my election to exercise the Conditional Refinancing Option. If this required net yield is not available, the Note Holder will determine the New Note Rate by using comparable information.

4. CALCULATING THE NEW PAYMENT AMOUNT

Provided the New Note Rate as calculated in Section 3 above is not greater than five percentage points above the Note Rate and all other conditions required in Section 2 above are satisfied, the Note Holder will determine the amount of the monthly payment that will be sufficient to repay in full (a) the unpaid principal, plus (b) accrued but unpaid interest, plus (c) all other sums I will owe under the Note and Security Instrument on the Maturity Date (assuming my monthly payments then are current, as required under Section 2 above), over the term of the New Note at the New Note Rate in equal monthly payments. The result of this calculation will be the amount of my new principal and interest payment every month until the New Note is fully paid.

5. EXERCISING THE CONDITIONAL REFINANCING OPTION

The Note Holder will notify me at least 60 calendar days in advance of the Maturity Date and advise me of the principal, accrued but unpaid interest, and all other sums I am expected to owe on the Maturity Date. The Note Holder also will advise me that I may exercise the Conditional Refinancing Option if the conditions in Section 2 above are met. The Note Holder will provide my payment record information, together with the name, title and address of the person representing the Note Holder that I must notify in order to exercise the Conditional Refinancing Option. If I meet the conditions of Section 2 above, I may exercise the Conditional Refinancing Option by notifying the Note Holder no later than 45 calendar days prior to the Maturity Date. The Note Holder will calculate the fixed New Note Rate based upon Fannie Mae's applicable published required net yield in effect on the date and time of day notification is received by the Note Holder and as calculated in Section 3 above. I will then have 30 calendar days to provide the Note Holder with acceptable proof of my required ownership, occupancy and property lien status. Before the Maturity Date the Note Holder will advise me of the new interest rate (the New Note Rate), new monthly payment amount and a date, time and place at which I must appear to sign any documents required to complete the required refinancing. I understand the Note Holder will charge me a $250 processing fee and the costs associated with updating the title insurance policy, if any.

BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Balloon Note Addendum.

(Seal)
(Seal)
(Seal) [Sign Original Only]
Enter text✕
Prepare your document for signing right on this page
  • 01 Edit the text and complete the fields
  • 02 Click Sign Now and on the next screen add recipients and signature fields in SignNow
  • 03 Start your free trial to sign and send your doc
Sign Now

What the Multistate Balloon Rider Single Family Fannie Mae Uniform Instrument Form Is

The Multistate Balloon Rider to the Single Family Fannie Mae Uniform Instrument Form (commonly used with single-family mortgage notes secured by a balloon payment) amends the standard Fannie Mae uniform mortgage instrument to add a balloon payment provision and any associated borrower acknowledgements. It defines the repayment schedule, balloon due date, applicable interest calculation, and lender remedies while preserving core covenants from the Fannie Mae uniform form set. The rider is used when the promissory note contains a final lump-sum payment that differs from periodic installments and must be attached to and signed with the underlying mortgage instrument.

Why the Balloon Rider Matters for Single-Family Mortgages

The rider creates a clear, enforceable record of a balloon payment arrangement, allocating rights and timelines between borrower and lender and reducing ambiguity at maturity.

Why the Balloon Rider Matters for Single-Family Mortgages

Who Typically Completes and Signs This Rider

Execution responsibilities vary by transaction role; confirm who retains originals, who records the mortgage, and which party delivers copies to investors or servicers.

  • Lenders and mortgage servicers — prepare and attach the rider to notes intended for Fannie Mae delivery or investor portfolios.
  • Title/closing agents — coordinate execution at closing and ensure attachment and notarization where required.
  • Borrowers — acknowledge balloon terms and sign the rider along with the primary mortgage instrument.

Step-by-Step: Completing the Balloon Rider at Closing

Follow these core steps to complete the rider correctly during loan closing or document execution.

  • 01
    Prepare the Rider: Attach the correct Fannie Mae balloon rider template and populate all required fields.
  • 02
    Verify Parties: Confirm borrower and lender names match the promissory note and title work.
  • 03
    Execute with Notary: Have signers acknowledge and notarize where state law or investor instructions require notarization.
  • 04
    Distribute Copies: Deliver originals to the recording party, servicer, and borrower; retain an executed copy for the loan file.

How to Build a Consistent Execution Workflow

Standardize steps and responsibilities to reduce errors in document preparation, signing, and delivery.

Field Configuration
Document Template Use the Fannie Mae-approved rider template and lock core clauses.
Pre-sign Review Title and underwriting confirm borrower identity and payoff calculations.
Notarization Step Assign notary or RON session depending on jurisdiction and investor acceptance.
Delivery Record mortgage if required; send executed copies to servicer and investor.

Technical and Integration Considerations for eSigning and Records

Choose a platform that produces tamper-evident PDF output, preserves an audit trail (IP, timestamp, actions), and can meet any HIPAA or investor-specific security addenda.

  • Integration Ecosystem: Salesforce | NetSuite | Microsoft 365 integrations streamline document delivery and recordkeeping.
  • File Formats: PDF and DOCX support ensure signed outputs remain compatible with investor systems.
  • Authentication: SMS, email, or advanced signer authentication accommodate varying investor and state rules.

Typical Digital Execution Workflow for a Balloon Rider

A standardized digital workflow reduces manual handoffs and preserves a complete audit trail for investor delivery.

  • Upload and Tag: Upload the rider and place signature, date, and initial fields where required.
  • Assign Signers: Add borrower and lender/closing agent emails and set signing order.
  • Authenticate Signers: Use email verification, SMS code, or stricter KBA per jurisdiction.
  • Complete and Archive: Capture the signed PDF and audit trail, then distribute to recording and servicing channels.

Key Clauses to Review in the Balloon Rider

Confirm the rider contains precise terms that will govern payment, default, acceleration, and investor delivery requirements.

Balloon Schedule

Clearly sets the maturity date and whether interim amortization is interest-only or scheduled payments with a lump-sum final payment.

Payment Mechanics

Specifies how the balloon is calculated, where payments must be sent, and post-maturity cure periods if any.

Acceleration

Explains events of default that permit acceleration of the balloon payment including notice periods.

Prepayment

States any prepayment penalties or conditions for early payoff of the balloon.

Assignment/Investor Delivery

Confirms obligations for assignment, endorsement, or other conditions required for Fannie Mae delivery.

Notices

Lists where legal notices should be sent and any borrower acknowledgements about the balloon feature.

Security and Compliance Elements to Preserve Enforceability

Encryption: TLS 1.2/1.3 in transit
Data at Rest: AES-256 encrypted storage
Audit Trail: IP, timestamp, action log
Certifications: SOC 2 Type II; ISO 27001
Regulatory: ESIGN and UETA compliance
Healthcare: HIPAA (BAA required)

Common Preparation Pitfalls to Avoid

  • Inconsistent names between note, rider, and title records delay recording and investor delivery.
  • Incorrect balloon amount or date can trigger payoff disputes at maturity, increasing legal risk.
  • Omitting notarization where state or investor rules require it can void the ability to record lien.
  • Using a non‑standard rider template may fail investor review and rejection for purchase delivery.

Legal and Financial Risks of Incorrect or Incomplete Riders

Recording Rejection: Leads to title defects, delaying sales or refinancing
Investor Non‑Acceptance: May require repurchase or cure, raising financial exposure
Interest Miscalculation: Can produce borrower disputes and potential litigation
I-9/Employment Risk: Not directly applicable | ensure related forms comply with 8 CFR §274a.2
Tax Reporting: Backup withholding risk if TIN errors occur (24% rate)
Breach of Privacy: HIPAA violation exposure if PHI handled improperly

eSignature Platform Pricing and Feature Comparison

Typical plan starting prices and feature availability for common eSignature vendors. Use vendor sites for plan details and to confirm trial offers.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No envelope cap 100 envelopes/user/year Varies Varies Varies

Frequently Asked Questions About the Balloon Rider and Electronic Execution

Answers to common execution, notarization, and enforceability questions for the Multistate Balloon Rider Single Family Fannie Mae Uniform Instrument Form.


Need help? Contact support

Explore Templates

Wyoming Mortgage Forms Wyoming Lease Agreement with Option to Purchase Wyoming Property Wyoming Secretary of State Registration Form New Legislation Center for Agricultural Law and Taxation Amendment for an Effective Financing Statement
be ready to get more
Join over 28 million airSlate SignNow users
Sign Now
Company
Forms
Pricing
Resources
Knowledge base
Other Products
© 2026 airSlate Inc. All rights reserved.