Which document outlines the terms of a mortgage agreement?

The document that outlines the terms of a mortgage agreement is the Mortgage Note. This legal instrument compiles the borrower's promise to repay the loan under the agreed-upon terms, including the amount borrowed, interest rate, repayment schedule, and any penalties for late payment. It serves as a binding contract between the borrower and the lender, clearly detailing the responsibilities of both parties concerning the loan.

While the Loan Estimate provides an overview of the expected costs and terms when the borrower applies for a loan, it does not serve as the actual agreement of terms. The Closing Disclosure is provided just before closing and details the final terms of the mortgage, but it is not the contract itself. The Title Deed, on the other hand, conveys ownership of the property rather than the financial agreement associated with the mortgage. Therefore, the Mortgage Note is the primary document that formally outlines the terms of the mortgage agreement.