Simple English definitions for legal terms
Read a random definition: free of all average
A mortgage note is a written promise to pay back money that was borrowed to buy a house. It's like a special kind of IOU that says the borrower will make regular payments to the lender until the entire amount is paid off. The note is usually secured by the house, which means if the borrower doesn't make the payments, the lender can take the house as payment instead.
A mortgage note is a written promise by one party (the borrower) to pay money to another party (the lender) or to bearer. It is a legal document that outlines the terms and conditions of a loan for which real property has been offered as security.
These examples illustrate the different types of mortgage notes that exist and the various terms and conditions that can be included in them. For example, a balloon note may be suitable for a borrower who expects to have a large sum of money available at the end of the loan term, while a floating-rate note may be more appropriate for a borrower who wants to take advantage of changing interest rates. Nonrecourse notes may be preferred by borrowers who want to limit their liability in case of default, while recourse notes may be preferred by lenders who want to have more options for recovering their money.