Why Mortgage Notes Deserve Your Attention
Closing on a home loan involves signing a mountain of paperwork, but hidden within that stack is a document that defines your entire mortgage journey—the mortgage note.
Often overlooked by buyers, the mortgage note is a legally binding promise that lays out your loan’s key terms: the amount borrowed, the repayment plan, and the lender’s rights if things go wrong. Whether you’re buying your first home, refinancing, or planning ahead, understanding this document can give you clarity and confidence in your mortgage.
What Is a Mortgage Note?
A mortgage note is a legal contract that outlines the terms of your mortgage loan. It includes:
- Loan amount you borrowed.
- Interest rate (fixed or adjustable).
- Repayment schedule and maturity date.
- Late fees and penalties if payments are missed.
- Prepayment clauses, which determine if you can pay off your loan early.
By signing it, you’re entering into a promissory agreement to repay your lender. The lender holds the note until your mortgage is paid off.