Guide to the Differences between a Home Mortgage and Promissory Note
If you have bought a house before, you no doubt have heard about mortgage. Mortgage refers to a loan that is taken out with the bank to purchase a house. Usually, you need to put a collateral to borrow a home mortgage. If you take out a mortgage, you will have to sign an agreement where you agree to pay back a certain amount every month until the end of the term to the bank.
Promissory note, on the other hand, is an agreement prepare by the borrower to the lender, which states he promises to pay back the sum that is borrowed. The note contains information about the interest of the sum borrowed, the repayment mode and the length of time you will take to repay the loan. There may be other clauses, for example, interest that is owed on a late payment.