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breaking another loan term down did you know that when youre taking out a loan youre promising to pay something back literally theres whats called a promissory note that you sign at closing so in that promissory note its going to talk about the loan terms so how long is it the loan if its a fixed rate or an arm and when youre going to pay off that mortgage and thats it thats what a promissory note is youre promising to repay that loan to its terms simple