Housenote

Housenote is a colloquial term used to describe the promissory note associated with financing a property purchase. In real estate lending, the note records the borrower's obligation to repay the loan and is typically paired with a security instrument such as a mortgage or deed of trust.

A housenote typically contains: names of borrower and lender, original principal amount, interest rate, payment amount and schedule, maturity date, and due date. It may specify how payments apply, late payment penalties, prepayment rights, and any fees. It also states what happens in default, including acceleration of the loan and potential remedies.

Legal and practical aspects: The note is usually a binding contract; in many jurisdictions it is treated as a negotiable instrument and can be transferred. The holder of the note is entitled to receive payments and to enforce the debt through the security instrument. The mortgage or deed of trust provides the lien securing the loan. Foreclosure or similar remedies are pursued using both the note and the security instrument.

Terminology: Because "housenote" is informal, real estate professionals typically use "promissory note" or "mortgage note." The exact terms may vary by jurisdiction, and some loans are non-negotiable. Borrowers should read the document carefully and consult counsel if needed.