Definition - What does Mortgage Note mean?
A mortgage note is a document that lays out the terms of the mortgage agreement, including interest rate, duration, etc. It is also legally binding once it is signed. After the borrower places his or her signature on the mortgage note, he or she is then legally obligated to repay the debt.
Justipedia explains Mortgage Note
Mortgage notes are used to document mortgage agreements for the official record. Because they are legally binding and represent a substantial financial obligation, it is wise for people to consider every angle of the deal to make sure that they can make good on their promise to repay the mortgage. If a borrower signs a mortgage note, and then three years later he/she cannot continue paying the mortgage, then his or her home could be foreclosed on.
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