Promissory Note
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.
What it is
A promissory note is your written promise to repay the loan. It states the amount, the rate, the payment, and the term.
In a mortgage, it is the core document that binds you to repay.
Why it matters
The promissory note sets the rules you must follow, so reading it closely protects you. It is signed at closing.
We explain your note in plain terms before you sign. Apply now and we will walk you through it.
Verify the details for your own situation against these government and agency sources: Freddie Mac Primary Mortgage Market Survey and Federal Reserve H.15 selected rates.