What is a promissory note secured by a mortgage considered?

A promissory note secured by a mortgage is considered primary evidence of the debt because it represents a formal written promise by the borrower to repay a specific sum to the lender under agreed-upon terms. This note outlines the borrower's obligation, including the amount borrowed, interest rate, and repayment schedule, establishing the legal basis for the lender to seek repayment in the event of default.

When a mortgage secures the promissory note, it provides an additional layer of assurance to the lender by attaching the note to a specific property. This means that if the borrower fails to repay the loan, the lender has the right to foreclose on the property to recover the owed amount. The promissory note's importance lies in its role as the primary document evidencing the borrower's commitment to the loan, which is essential for both legal and financial purposes.

In contrast, other options, such as secondary evidence of the loan, would suggest a lesser claim or documentation of the obligation, which does not accurately describe the nature of a promissory note. An irrevocable contract implies an unchangeable agreement, while classifying it as just a formality would undermine its significance in formalizing the borrower's commitment to the lender.