Mortgage Notes At A Glance

Mortgage Notes at a Glance A mortgage note is a legal document that outlines the terms of a loan for purchasing a property. What They Do A mortgage note legally binds the borrower to repay a debt and specifies:

• How much was borrowed.
• The interest rate.
• Who borrowed and who lent.
• The plan for repayment.
• What should happen if payments stop.

Different Types of Mortgage Notes Secured Loan

• Uses assets as collateral

Private Loan

• The lender owns the property outright

Institutional Loan

• A loan from a traditional mortgage lender or bank

Selling a mortgage note is legal and can be done as long as the borrower is notified during the application for the loan. Whether the seller is an institution or private entity, they are legally required to notify the borrower of the change.