Free Mortgage Loan Agreement

This Mortgage Loan Agreement (the "Agreement") is made and entered into as of January 1, 2050, by and between:

Lender:
[Your Company Name]

[Your Company Address]

Borrower:
John Doe
5678 Maple Drive
Springfield, IL 62701

1. LOAN AMOUNT AND TERMS

The Lender agrees to loan the Borrower the sum of Five Hundred Thousand Dollars ($500,000.00) (the "Loan"), to be repaid under the terms outlined in this Agreement.

2. INTEREST RATE

The Loan will bear an interest rate of 4.5% per annum, calculated on the outstanding principal balance. The interest rate is fixed for the first 15 years of the loan and will then be adjusted every 5 years based on the prevailing market rate.

3. REPAYMENT TERMS

• The Borrower agrees to repay the Loan in monthly installments of $2,500.00, starting on February 1, 2050, with the final payment due on January 1, 2080.

• Payments will be applied first to interest, and then to the principal balance.

• If the Borrower wishes to pay off the Loan early, there are no penalties for prepayment.

4. COLLATERAL

The Loan is secured by the property located at 123 Oak Street, Springfield, IL 62701 (the "Property"). In the event of default, the Lender has the right to foreclose on the Property by state law.

5. USE OF LOAN

The Borrower agrees that the Loan will be used solely for the purchase of the Property. The Borrower shall not use the Loan for any other purposes without the prior written consent of the Lender.

6. INSURANCE AND TAXES

• The Borrower is required to maintain homeowner's insurance on the Property, naming the Lender as an additional insured party.
  

• The Borrower is responsible for paying all property taxes on the Property and agrees to provide proof of payment to the Lender annually.

7. DEFAULT AND REMEDIES

• Event of Default: The Borrower will be in default if:
  

  1. The Borrower fails to make any payment under this Agreement within 30 days after the due date.

  2. The Borrower files for bankruptcy or becomes insolvent.

  3. The Borrower sells, transfers, or otherwise disposes of the Property without the Lender’s consent.
     

• Remedies: In the event of default, the Lender may declare the entire outstanding balance of the Loan due and payable immediately and may initiate foreclosure proceedings on the Property.

8. GOVERNING LAW

This Agreement shall be governed by and construed by the laws of the State of Illinois, without regard to its conflict of law provisions.

9. ENTIRE AGREEMENT

This Agreement contains the entire understanding of the parties and supersedes all prior agreements, representations, and understandings, whether written or oral, relating to the subject matter hereof.

10. AMENDMENTS

Any amendments or modifications to this Agreement must be made in writing and signed by both the Lender and the Borrower.

11. SIGNATURES

IN WITNESS WHEREOF, the Lender and Borrower have executed this Mortgage Loan Agreement as of the date first above written.

[Your Name]

[Your Company Name]
[Date]

John Doe
[Date]

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