The legal document you sign at closing promising to repay the mortgage loan under the specified terms.
Full Definition
The mortgage note (or promissory note) is the borrower's written promise to repay the loan. It specifies: the loan amount, interest rate, payment schedule, due dates, late payment provisions, and the lender's remedies in case of default. Unlike the deed of trust or mortgage (which creates the lien on the property), the note is a personal financial obligation. If you sell the property and the buyer doesn't assume the loan, you pay off the note at closing. Notes can be sold by lenders to investors on the secondary market, which is why your loan servicer may change after closing even if your original lender keeps the servicing rights.
Related Terms
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