Mortgage Glossary
Promissory Note
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
A promissory note is the written promise to repay a loan, spelling out the amount, rate, payment schedule, and terms.
What Promissory Note means
In a mortgage, the promissory note is the borrower's personal obligation, while the mortgage instrument secures it against the property. The lender can sell the note to another investor.
Florida example
A Florida borrower signs a promissory note for $350,000 at 6.75%. If the loan is later sold, the new holder enforces the same note terms and the borrower's monthly payment is unchanged.
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