What is a Mortgage Note?
A mortgage note is a document signed at the closing promising you will repay your mortgage. Mortgage notes are contractual legal documents filed with the local government that state the agreed-upon terms of your loan and outline the details of the property used to secure the mortgage. If the terms of the mortgage outlined in the note are not met, then the lender has the right to begin foreclosure or repossess the property.
What is Stated in the Mortgage Note?
The mortgage note specifies important factors related to your loan, such as:
- The total loan amount (the mortgage)
- The down payment amount
- Monthly or bi-monthly mortgage payments
- Loan program and term (30-year fixed rate, 15-year fixed rate, 10/1 ARM, 5/1 ARM, etc.)
- Pre-payment penalties (if applicable)
- Personal information such as the parties involved in the contract (you, the lender, etc.)
Mortgage Note Example
How to Get a Copy of Your Mortgage Note
You receive a copy of your mortgage note at your mortgage closing. It is important to hold onto your mortgage note (and any other important paperwork received at closing), so you can refer back to the original terms of your loan. If you happen to lose your closing papers or they get destroyed, you can obtain a new document through the county’s records. You may also contact the mortgage company that services your loan for a copy of the mortgage note.