What is Mortgage Note?
A mortgage note is a legal document in which you promise to repay a specific loan amount plus interest according to set terms, and it is separate from the mortgage or deed of trust.
A mortgage note is a written promise to repay a mortgage loan under specific terms, including the loan amount, interest rate, payment schedule, and consequences of default. It is signed by the borrower and is separate from the mortgage or deed of trust, which secures the note by giving the lender a lien on the property. Borrowers encounter the note at closing, often among a stack of documents. Watch for details like the prepayment penalty, late fees, and whether the note allows assumption. The note may be transferred to another servicer or investor, but its terms remain binding. Keep a copy for your records.
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