Interest calculation 30/360 & monthly payments

If your lender settings are to have interest calculated based on the actual number of days in such a month over 360. Principal and interest payments are based on 30/360, generally for uniformity over that period. You can find the interest calculation portion of the note in section C.2. The amortization schedule and interest calculation of that loan will lead to a balloon payment at maturity to account for any outstanding principal and interest.

Section C.4 of the Note identifies monthly payments for interest only; the monthly payment is estimated on the full loan amount outstanding, based on the number of days in the month preceding the payment (eg. an August 1 payment is based on the number of days in July).

Section C.5 of the Note identifies monthly payments of principal and interest; the initial P&I payment is based on the entire loan amount outstanding, amortized over x-amount of years at the fixed rate.