Which document outlines the terms and repayment obligations for a loan?

The promissory note is the document that explicitly outlines the terms and repayment obligations for a loan. It serves as a legal contract between the borrower and the lender, detailing the amount borrowed, the interest rate, the repayment schedule, and the consequences of defaulting on the loan. This document effectively represents the borrower's promise to pay back the loan under the specified conditions.

While the deed of trust establishes a security interest in the property itself and the mortgage document serves a similar security purpose, neither specifically delineates the borrowing terms and repayment schedule as comprehensively as the promissory note does. The loan agreement may encompass broader terms that include various conditions and stipulations beyond just the repayment aspects; however, the promissory note focuses exclusively on the borrower's commitment to repayment, making it the fundamental document for understanding the loan's financial obligations.