Which document describes the terms of a mortgage loan?

The promissory note is the document that outlines the terms of a mortgage loan. This legally binding agreement details the borrower's promise to repay the loan, including the amount borrowed, the interest rate, repayment schedule, and any other obligations. It essentially captures the borrower's commitment to repay the lender and serves as the primary evidence of the loan.

While the other documents mentioned play significant roles in the mortgage process, they serve different purposes. The mortgage agreement, for instance, is a legal document that secures the loan by placing a lien on the property as collateral for the loan. The title deed shows ownership of the property and indicates who holds legal rights to it. The closing statement details all costs and credits associated with the closing of a real estate transaction, summarizing financial aspects without specifically outlining the mortgage terms. Thus, the promissory note is centrally significant in defining the specifics of the loan.