What document outlines the terms of a mortgage loan?

The mortgage note is the document that specifically outlines the terms of a mortgage loan. It serves as a legal agreement between the borrower and the lender, detailing essential information such as the loan amount, interest rate, repayment terms, and the duration of the loan. The mortgage note is crucial because it establishes the borrower's promise to repay the loan according to the outlined conditions. If the borrower defaults, the lender can enforce the terms of the mortgage note in court, making it a foundational document in the mortgage process.

In comparison, the title deed represents ownership of the property and does not contain loan terms. The loan estimate is a disclosure provided early in the mortgage process that outlines estimated loan terms and costs, but it is not a binding agreement. Similarly, the closing disclosure is provided before finalizing the loan and summarizes the final terms and costs, but again, it does not serve as the formal loan agreement like the mortgage note does.