What is a promissory note?

A promissory note (also known as a mortgage note or a note) is one of the 2 instruments used in a mortgage loan

(The mortgage is the other instrument used in a mortgage loan)

A note must accompany all mortgages in Florida and is evidence of the borrower’s personal promise to repay the loan that has been advanced by the lender

The note forms the contract between the borrower and the lender for the loan and contains:

  • the full name of the borrower and the lender
  • the amount of the loan
  • the interest rate
  • the loan repayment terms

The note contains no security to the lender other than the borrower’s promise to pay