What is the main financial advantage of a straight note for a borrower?

The primary financial advantage of a straight note for a borrower is the structure of payments. In a straight note, the borrower typically pays only interest for a set period, with the entire principal amount due at the end of the term. This arrangement results in lower monthly payments compared to traditional amortizing loans, where both principal and interest are paid in each installment.

Lower monthly payments can provide significant financial relief, especially for borrowers who may have fluctuating income or who prefer to allocate resources for other investments or expenses. This flexibility is often appealing, as it can ease cash flow management during the loan term.

In contrast, options such as higher principal payments, longer loan terms, or reduced interest rates do not directly reflect the primary benefit of the straight note model, which is centered on keeping monthly outlays lower, allowing the borrower to retain more capital for other uses during the interest-only period.