What Is a Mortgage Note and Where Can I Find It?

A mortgage note is a foundational document in real estate transactions, serving as a borrower’s formal promise to repay a home loan. This legally binding agreement outlines the specific terms and conditions of the debt, making it a central component of home financing. Understanding what a mortgage note entails and knowing where to locate your copy is essential for any homeowner.

Understanding the Mortgage Note

A mortgage note, often called a promissory note, is a written contract that legally obligates a borrower to repay a specific sum to a lender. It acts as evidence of the debt and details the terms under which repayment will occur. Signing this document at closing makes the agreement legally enforceable.

The mortgage note formally outlines the loan’s repayment terms. It ensures both parties understand their financial obligations and rights throughout the loan’s duration. Without this document, the financial agreement would lack the necessary legal framework for enforcement.

Mortgage notes contain components that define the loan’s structure. These include the principal amount and the interest rate, specifying whether it is fixed or adjustable. The note also details the payment schedule, outlining the frequency, amount, and due dates for each installment.

Further details include the maturity date, which is when the entire loan balance is due. It identifies both the borrower and the lender. The document also stipulates penalties for late payments and outlines clauses related to default. Prepayment clauses are included, indicating whether a borrower can pay off the loan early without incurring additional fees.

A mortgage note differs from a mortgage or deed of trust, though these terms are often used interchangeably. The mortgage note represents the actual debt—the promise to repay borrowed funds. In contrast, the mortgage or deed of trust is a separate legal instrument that pledges the property as collateral for that debt.

The mortgage note establishes the personal obligation to pay, while the mortgage or deed of trust creates a lien on the property. This lien gives the lender the right to foreclose if the borrower fails to uphold the repayment terms outlined in the note. While a mortgage involves two parties (borrower and lender), a deed of trust introduces a third party, a trustee, who holds legal title to the property until the loan is fully repaid.

Locating Your Mortgage Note

Borrowers receive a copy of their mortgage note during the loan closing process. This document is provided alongside the deed and the mortgage or deed of trust. Keep these closing documents in a secure location, such as a fireproof safe or a safety deposit box, for future reference.

If you need a copy of your mortgage note after closing, your loan servicer is the primary point of contact. The original mortgage note is held by the lender or their designated loan servicer. You can request a copy by contacting their customer service department, often through an online portal, a phone call, or a formal written request.

The mortgage note itself is not recorded in public records. While the mortgage or deed of trust, which secures the loan with the property, is recorded with the county recorder’s office to establish the lien, the promissory note is not. The recording of the mortgage or deed of trust provides public notice of the lien, but it does not include a copy of the private debt instrument.

While public records can confirm the existence of a lien on your property, they will not provide a copy of the specific terms detailed within your mortgage note. For that, you will need to contact your loan servicer directly. Maintaining your own copy of the mortgage note with your financial documents ensures ready access to its terms.