The mortgage lender or servicer holds the original mortgage note until the loan is fully paid off. The borrower receives a copy of the mortgage note at closing, but not the original.

A mortgage note, also called a promissory note, is a legal agreement to repay a mortgage. It outlines the terms of the agreement between the lender and borrower, including the interest rate, the amount owed, and what happens if the loan is not repaid.

The value of a mortgage note depends on the likelihood of the payer continuing to make payments. A less-risky note is worth more than a higher-risk note. Other factors that can increase the value of a note include:

The property's increasing market (appraised) value

The buyer's equity in the property