The promissory note
The note is your promise to repay the loan, with the amount, interest rate, payment schedule and late charges. It is a contract between you and the lender. The borrower signs it, usually without a notary, and the lender holds the original.
If the loan is paid off, the note is marked paid and returned or cancelled.
The mortgage or deed of trust
The mortgage is the security instrument. It gives the lender a claim on the property if you do not repay as promised. In some states the document is called a deed of trust and involves a third-party trustee, but it plays the same role.
This is the document that is notarized and recorded in public land records, so that anyone checking the property sees the lien.
The deed
The deed transfers ownership of the property from the seller to the buyer. It is signed by the seller, notarized, and recorded. The buyer does not normally sign the deed in an ordinary sale.
Different deed types carry different promises about the title. The contract and the title company decide which one is used.
How they fit together
Think of it this way. The deed answers who owns the property. The note answers who owes the money. The mortgage answers what happens to the property if the money is not repaid.
On a refinance, there is typically a new note and mortgage but no new deed, since ownership did not change.
Why the distinction matters
When someone pays off a mortgage, they receive a satisfaction or release of the lien. Paying off the loan does not give you a new deed, because you already own the home. Keep that release with your records. If you are unsure which document you need recorded, ask an attorney or title company.
Real-life scenarios and where each document ends up
Say you buy a home with a loan. You sign a note and a mortgage, and the seller signs a deed to you. Three documents, three jobs. Say you later add your spouse to the title. That involves a new deed, not a new loan, and the lender may have a say if the loan includes a due-on-sale clause.
Say you pay off the loan. The lender records a satisfaction of the mortgage. You do not get a new deed. Say a relative gives you a home as a gift. A deed moves the title, and no note is needed unless money is borrowed. Questions about tax and legal consequences belong with a lawyer or tax professional.
After signing, the lender keeps the note, often in a secure vault or in electronic form. The county keeps the recorded mortgage and deed in its land records. You keep copies of each.
If a lender sells your loan, the note and mortgage move to a new holder, and a servicer may change. Your obligations stay the same, but where you send payments may not.
Common questions
Which of these is recorded?
The deed and the mortgage are recorded in the county land records. The note usually stays with the lender.
Does a notary notarize the note?
Usually not. The lender typically requires notarization on the mortgage or deed, not the note.
What if my loan is sold?
The lender may transfer the note and an assignment of mortgage is typically recorded. Your payment terms remain the same.
More notary guides
- Owner's vs. Lender's Title Insurance: Two Policies, Two Jobs
- Apostille, Authentication, Legalization: What's the Difference?
- Lost Note or Deed? How Missing Property Papers Are Replaced
This guide is general information, not legal advice. Fees and procedures change; check with the office involved or an attorney for your situation.