# Promissory note

> A promissory note is the document you sign at closing promising to repay the mortgage on stated terms. How it differs from the mortgage or deed of trust.

URL: https://mail.mortgage-math-us.com/glossary/promissory-note/  
Last reviewed: 2026-10-29 · By the MortgageMath US Editorial team

## Quick answer

**A promissory note** is the written promise you sign at [closing](https://mail.mortgage-math-us.com/glossary/closing/) to repay your mortgage loan. It states the amount you owe, the interest rate, the payment amount and schedule, and what happens if you pay late or don’t pay.

## Note vs mortgage or deed of trust

A home loan comes with two core documents that do different jobs:

| Document | What it does |
|---|---|
| Promissory note | Creates the debt: your personal promise to repay on the stated terms |
| Mortgage or [deed of trust](https://mail.mortgage-math-us.com/glossary/deed-of-trust/) | Makes the home collateral and gives the lender a [lien](https://mail.mortgage-math-us.com/glossary/lien/) it can foreclose if you don’t pay |

When you pay the loan off, the note is marked paid and the lender releases the lien in the public records. Notes are often sold to investors such as [Fannie Mae and Freddie Mac](https://mail.mortgage-math-us.com/glossary/fannie-mae-and-freddie-mac/), and the company you pay — your [mortgage servicer](https://mail.mortgage-math-us.com/glossary/mortgage-servicer/) — may be different from the note’s owner. Your terms stay the same either way.

## What to check before you sign

Compare the note with your [Closing Disclosure](https://mail.mortgage-math-us.com/glossary/closing-disclosure/): the loan amount, interest rate, monthly principal and interest, first payment date and maturity date should match. Look for the late charge and grace period, and whether there’s a [prepayment penalty](https://mail.mortgage-math-us.com/glossary/prepayment-penalty/) or [balloon payment](https://mail.mortgage-math-us.com/glossary/balloon-payment/). On an adjustable-rate loan, the note also sets the index, margin and caps. Keep your copy with your other closing papers; the [Loan Estimate guide](https://mail.mortgage-math-us.com/buying/loan-estimate/) shows how the two disclosure forms line up.

## Sources

- [CFPB: What documents should I receive before closing on a mortgage loan?](https://www.consumerfinance.gov/ask-cfpb/what-documents-should-i-receive-before-closing-on-a-mortgage-loan-en-181/)
- [CFPB: What can I expect in the mortgage closing process?](https://www.consumerfinance.gov/ask-cfpb/im-about-to-close-on-a-real-estate-purchase-transaction-with-a-mortgage-what-can-expect-in-the-mortgage-closing-process-en-1905/)

_General information, not financial advice._