30-yr fixed 6.43% ▾ 0.06 wk
15-yr fixed 5.79% ▾ 0.04 wk
HELOC avg 7.90% — no change
Auto 60-mo new 6.82% ▴ +0.03 mo
Personal 24-mo 11.57% ▾ 0.12 qtr
Credit card APR 21.52% ▴ +0.09 qtr
as of Jul 2, 2026 · Federal Reserve / Freddie Mac via FRED (St. Louis Fed)
Glossary

Promissory note

The legal document where you promise to repay a loan under specific terms — amount, rate, schedule, and what happens on default.

A promissory note is the borrower's written, signed promise to repay — it spells out the principal amount, interest rate, payment schedule, and the consequences of missing payments. On a mortgage, the note is paired with the deed of trust or mortgage, which gives the lender the right to the property if the note isn't honored. Signing one is a binding legal commitment, which is why every figure on it deserves a careful read before signing, not just at closing.

Related terms

  • Escrow A holding account your servicer uses to collect and pay property taxes and insurance alongside your mortgage payment.
  • Charge-off When a creditor gives up trying to collect a debt through normal billing and writes it off as a loss — typically after 180 days of non-payment.
  • Lien A legal claim against property that secures a debt — the lienholder can force a sale to collect if the debt goes unpaid.
  • Unsecured A loan that requires no collateral — approval rests on your credit profile and income.
  • Balloon payment A large lump sum due at the end of a loan term, after years of smaller payments that didn't fully pay off the balance.
  • Deed of trust A three-party document (borrower, lender, trustee) some states use instead of a mortgage to secure a home loan against the property.

← All loan terms