You hear these two terms interchangeably but it’s important to learn that these are two different legal agreements when buying a home.
The mortgage is an agreement between you and your lender. Simply put, this agreement permits the lender to take your home (after a foreclosure process) if you don’t pay the amount you owe.
The note is also an agreement between you and your lender. However, this agreement is limited to a promise that you will pay back the amount you borrowed.
You will sign both of these documents at Closing. It’s important to review who has to sign on the agreements. For example, if a husband and wife are purchasing a home, one could manage having one spouse on the note which would only obligate that spouse to pay.