Mortgage Note
A mortgage note (also called a promissory note) is the legal document you sign that obligates you to repay the loan. It spells out the loan amount, interest rate, repayment schedule, and consequences for default. The mortgage note is your personal promise to pay; the mortgage or deed of trust is the document that pledges the property as collateral.
The mortgage note is the financial contract at the heart of your home loan. It contains critical details: the principal amount borrowed, the interest rate (and whether it's fixed or adjustable), the loan term, the monthly payment amount, the due date each month, any prepayment penalty provisions, and what happens if you default.
Because the note is a negotiable instrument, your lender may sell it to another company—which is why your loan servicer might change over time. If your note is sold, your terms cannot change; the new holder must honor the original agreement. You'll receive a notice within 15 days of any transfer.
Keep a copy of your mortgage note in a safe place. If you pay off your loan, your lender is required to send you a canceled note (sometimes called a 'note satisfied' or 'note marked paid') confirming your debt is discharged. Some states require the lender to record a release of lien with the county recorder's office.
Key Takeaway
A mortgage note (also called a promissory note) is the legal document you sign that obligates you to repay the loan. It spells out the loan amount, interest rate, repayment schedule, and consequences for default. The mortgage note is your personal promise to pay; the mortgage or deed of trust is the document that pledges the property as collateral.
Related Terms
Frequently Asked Questions
The mortgage note is your promise to repay the debt—it's the IOU. The mortgage (or deed of trust) is the document that pledges your home as collateral if you don't pay. You sign both at closing.
Your loan terms are protected even if the note is sold. The new owner must honor your original interest rate, term, and payment schedule. You'll receive written notice of the transfer within 15 days.
Yes. You should receive a copy at closing. If you lost yours, contact your lender or servicer to request a copy, or look for the recorded document at your county recorder's office.
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