A balloon note amortizes like a normal loan for a while, then the whole remaining balance comes due at once.
How the schedule works
The loan follows its normal payment schedule (amortizing or interest-only) up to the balloon point; the final row then balloons the remainder: the entire outstanding balance plus that period's interest. The balloon composes with the loan's other terms (interest type, rate riders, day-count), so the schedule you preview is the schedule you service.
Balloon notices
You'll never be surprised by a maturing balloon. NoteHarbor surfaces escalating reminders at 12 months, 6 months, 90 days, 60 days, and 30 days before the balloon date (and flags one that's past due). They appear on the dashboard's balloon notices, so an approaching balloon is visible every time you open the app.
Extensions
Agreed to give the borrower more time? An extension moves the balloon date: the reminders re-anchor to the new date and the loan's balloon metadata follows along, including through loan modifications.
Guarded term edits
Because the balloon is derived from the loan's terms, term edits on balloon loans are guarded: changes that would silently break the balloon structure are rejected with a clear message instead of producing a schedule that no longer matches the note.
Boarded a note with the wrong balloon month? An Owner or Admin can correct it from Edit Loan with Balloon Due After (months), counted from the first payment date just like when the loan was created. The field previews the new balloon date and amount as you type, and warns you if that date has already passed. Saving rebuilds the schedule from origination with the new month and re-applies every recorded payment, so save it on its own; the regular payment does not change. The new balloon has to fall after every installment that already has a payment or late charge recorded against it (if the borrower is paying off, record a payoff instead). A loan with recorded extensions or modifications moves its balloon with an extension instead, and a loan with any forbearance or payment-deferral history (including ended, cancelled, undone or reversed ones) can't be re-derived this way. The same rule applies to editing, deleting or reversing a payment, applying escrow to the balance, reordering the payment waterfall, and copying the loan: each would rebuild the schedule from origination, so it is refused with no changes made. Contact support for a reviewed correction.
Balloon loans with a matured balloon can't be shared to an investor's workspace. The share is refused clearly rather than creating a divergent copy.