About this template
Is this a legally binding contract?
A promissory note becomes binding when both parties sign it. This generator gives you a starting template with the standard clauses: promise to pay, interest, repayment, prepayment, default, and governing law. Have an attorney review it for your situation, especially for a large or secured loan.
What interest rate should I use?
At least the Applicable Federal Rate (AFR) for your term, so the loan isn't treated as a gift. The generator fills in the current AFR, and you can change it.
Does this cover a secured loan (mortgage)?
No. This is an unsecured note. Securing a loan against a home adds a mortgage or deed of trust, recording, and title work, and that needs an attorney.
This generator provides a general template, not legal advice, and does not create an attorney-client relationship. Laws vary by state. Have a licensed attorney review any promissory note before signing.