What is the difference between the Note and Mortgage?

A Note is your promise to repay the lender the amount of money that you borrowed. The Note is not recorded in the public records and stays with the lender. The Mortgage (or deed-of-trust in some states) is the document that is recorded in the public records and provides notice that the lender has a security interest in the real estate, meaning your property is acting as collateral for the loan between you and the lender until the loan is paid in full. The Mortgage is a lien on your property and allows your lender to foreclose if the Note is not repaid.

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