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Mortgage Glossary

Mortgage Note

Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker

A mortgage note is the legal document in which the borrower promises to repay the loan and sets out the terms.

What Mortgage Note means

It states the loan amount, interest rate, payment schedule, and default consequences. The note is the promise to pay, while the mortgage secures that promise against the property.

Florida example

At a Florida closing, the buyer signs the note agreeing to repay $350,000 at 6.75% over 30 years. The lender can sell the note to another investor, who then collects the payments.

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