What is one form an instrument for a secondary mortgage loan can take?

A promissory note is indeed one form that an instrument for a secondary mortgage loan can take. In the context of financing, a promissory note serves as a legal document in which the borrower formally vows to repay a specific amount of money, usually with interest, to the lender. This document outlines the terms of the loan, including repayment schedules, interest rates, and any penalties for default.

In secondary mortgage lending, the promissory note is critical because it establishes the borrower's obligation to repay the loan and provides legal recourse for the lender in case of non-payment. It acts as a promise that is enforceable by law, making it an essential component of the mortgage loan process.

Other options like a lease agreement, mortgage deed, or financial statement do not serve the same purpose within the mortgage loan framework. A lease agreement is generally related to rental arrangements, a mortgage deed involves the transfer of property rights, and a financial statement typically provides information about the borrower’s financial status rather than serving as a loan instrument itself.