Did you know that you don't really pay your mortgage?
One of the things that I try to explain to borrowers at closing is that the most important document they sign for the lender is the promissory note. The promissory note is the borrower’s written promise to pay the loan back to the lender at a certain rate for a certain term. The note details the amount of the loan, the interest rate and the duration of the loan payments. It also states that the borrower agrees to execute a mortgage as evidence of the debt due to the lender. The mortgage is the security instrument for the repayment of the debt. (more…)