"When you buy a home and take out a mortgage, you sign a lot of paperwork. One of the most important documents is the mortgage note. Sometimes called a promissory note, this legally binding contract lays out the details of your loan and your promise to repay it. Whether you're browsing homes for sale in Austin, TX or considering buying a house in Seattle, WA, understanding how a mortgage note works is essential."
"A mortgage note is the written agreement between you (the borrower) and your lender that specifies: The amount you borrowed The interest rate The repayment schedule (monthly payments, term length, due dates) What happens if you miss payments or default Think of it as the "IOU" of your . Unlike your mortgage or deed of trust, which secures the loan against your property, the mortgage note itself is your personal promise to repay."
A mortgage note is a legally binding written promise by a borrower to repay a home loan, specifying the principal, interest rate, repayment schedule, and default consequences. Mortgage notes commonly include loan amount, fixed or adjustable interest, monthly payment amount and due dates, loan term, late fees, an acceleration clause allowing the lender to demand full balance on default, and prepayment terms that may permit early payoff without penalty. The mortgage note documents the personal obligation to repay. A mortgage or deed of trust separately secures the loan with the property. Lenders may sell the mortgage note without changing loan terms.
Read at Redfin | Real Estate Tips for Home Buying, Selling & More
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