Written promise to repay a mortgage loan plus interest. The Mortgage gives the lender a security interest in the mortgaged property. The mortgage note is the Promissory Note stating the principal amount due, the rate of interest, and the terms for repayment of the funds advanced. The borrower signing the note, and any cosigners, are personally liable for repayment of the debt.

Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.