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Mortgage Glossary

Promissory Note

Mike Starr·Reviewed August 2026

A promissory note is a legally binding written promise to repay a specific sum of money to the lender under defined terms — including the interest rate, payment schedule, and consequences of default. In a mortgage transaction, the promissory note is the borrower's personal obligation to repay the debt, separate from the mortgage itself (which secures the note against the property).

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