Education

How Mortgage Note Valuation Works: What Determines Your Note Worth

October 30, 2025
10 min read
By PMN Buyers Team

How Mortgage Note Valuation Works

When you are considering selling your mortgage note, understanding how buyers determine its value is essential.

The Fundamental Principle

At its core, note valuation is based on future cash flows discounted to present value.

Key Factors

1. Payment History

The borrower payment history is the most important factor.

2. Loan-to-Value Ratio

The LTV ratio compares the note balance to property value.

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