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foreclosure of the maker's interest. For loans between individuals, writing and signing a promissory note is often considered a good idea cash advance loan cost tax and recordkeeping reasons. A promissory note differs from an IOU in that the latter is a simple acknowledgement of the existence of a debt owed, whereas a promissory note, as its name implies, contains an affirmative undertaking to pay the amount stated. In the United States, a promissory note that meets certain conditions is a negotiable instrument governed by Article cash advance loan cost of the Uniform Commercial Code. Negotiable promissory notes are used extensively in combination cash advance loan cost mortgages in the financing of real estate transactions. Other uses of promissory notes include the capitalization of corporate finances through the issuance and transfer of commercial paper. Payment Shock - Industry term to describe the severe (unexpected or planned for by borrower) cash advance loan cost movement of mortgage loan interest rates and it's effect on borrowers. Sadly, for those that do not read this wiki entry or who do read it but cannot understand it's contents, they may experience it, or spend too much of their incomes to borrow on fixed terms only. See Caps below Cap - Any clause that cash advance loan cost a maximum change for the interest rate of an ARM loan. Understanding CapsFor other uses of Amortization, see the Amortization
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