Direct answer
What does Promissory note mean?
A borrower's written promise to repay a debt under stated terms.
Exam cue: The note is evidence of the debt. The mortgage or deed of trust is the security instrument.
What does it look like in a question?
New York example
A borrower signs a note stating the loan amount, interest rate, payment schedule and maturity date.
Common exam trap
What should you not confuse it with?
The note is not the document that transfers ownership of the property.
Related real estate finance terms
AmortizationRepayment of debt through scheduled payments that reduce principal over time.Balloon paymentA final payment that is substantially larger than the preceding scheduled payments.Debt serviceThe scheduled principal and interest payments required on debt for a stated period.EquityThe owner's value in property after subtracting liens from the property's value for the calculation being used.ForeclosureThe legal process used to enforce a mortgage lien after default and subject the property to sale or another court-ordered remedy.Loan-to-value ratioThe loan amount expressed as a percentage of the applicable property value or price.
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The curriculum citation confirms exam scope. Definition and rule citations support the explanation itself. Links and locators were checked on August 26, 2026.
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A definition helps with recall. The subject guide shows how the rule interacts with documents, scenarios, calculations and practice questions.