Finance

In Kentucky, a 'note' in a mortgage transaction is the:

AProperty deed
BPromissory note representing the borrower's personal promise to repay the loan✓ Correct
CTitle insurance policy
DLoan commitment letter

Explanation

The promissory note is the borrower's written, legally binding promise to repay the loan. The mortgage (or deed of trust in other states) is the separate document that pledges the property as security.

Related Kentucky Finance Questions

Practice More Kentucky Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Kentucky Quiz →