A promissory note is a borrower’s written promise to repay a specified amount of money under agreed terms.
A mortgage is the security instrument that pledges real property as collateral for that note.
Together, they form the legal and financial foundation for most real estate loans.
If the borrower defaults, the lender may foreclose on the property under the rights granted by the mortgage.
The Maryland 60-Hour Course explains that while some states use deeds of trust instead of mortgages, Maryland primarily uses mortgages and promissory notes in conventional real estate financing.
[Reference:, Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course – “Real Estate Financing” Module, Md. Real Property Article §7-105 – Mortgage and Foreclosure Provisions., , , ]
Submit