When real estate is used as collateral to secure the loan, the note is a:

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A real estate mortgage note is a promissory note that is secured by a mortgage on real property. The mortgage serves as collateral for the loan and gives the lender the right to sell the property if the borrower fails to make payments. This type of note is commonly used in real estate transactions. A balloon note is a type of loan where the borrower makes small payments for a set period of time and then repays the entire balance in one lump sum. A fixed note has a fixed interest rate and payments over the life of the loan. "Property note" and "landed note" are not commonly used terms in real estate or lending.

When Real Estate Is Used as Collateral to Secure the Loan