FinancingMortgage_instrumentsEASY
Which document is the borrower's personal promise to repay a mortgage loan according to its terms?
Correct Answer
A) The promissory note signed by the borrower
The promissory note is the borrower's written promise to repay the debt. It states the principal amount, interest rate, payment terms, and consequences of default, while the mortgage or deed of trust secures that promise with the real property.
Answer Options
A
The promissory note signed by the borrowerB
The deed that transfers title from seller to buyerC
The mortgage or deed of trust securing the propertyD
The Closing Disclosure summarizing settlement costsWhy This Is the Correct Answer
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Related Topics & Key Terms
Key Terms:
promissory_notedebt_obligationloan_documentsmortgage_instruments
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