What is the primary purpose of a promissory note in a mortgage?

The primary purpose of a promissory note in a mortgage is to specify the terms of loan repayment. This document is a legal instrument that outlines the borrower's promise to repay the borrowed money under specific conditions, including the amount, interest rate, and schedule of payments. It serves as evidence of the debt and includes crucial details like the loan amount and duration, which are essential for both the lender and borrower to understand their obligations. By emphasizing these repayment terms, the promissory note ensures that both parties are clear on their financial responsibilities throughout the life of the loan.

While the interest rate may be detailed within the promissory note, that is just one aspect of the broader repayment terms it defines. The property description is typically included in the mortgage document itself, and the seller's disclosures pertain to the seller's obligation to provide information about the property's condition and legal status, which is unrelated to the promissory note's function.