In real estate finance, an Installment Note is a promissory note that requires the borrower to repay a loan through a series of scheduled periodic payments. Each payment typically includes both principal and interest and continues until the loan balance is fully paid.
As the borrower makes these payments, the principal balance is gradually reduced, which amortizes the loan over time. Installment notes are commonly used in mortgage financing and other real estate loans because they provide predictable repayment terms.
