What document outlines the terms of the mortgage loan?

The promissory note is the document that outlines the terms of the mortgage loan. It serves as a legal contract between the borrower and the lender. The promissory note specifies critical details such as the loan amount, interest rate, repayment schedule, and the consequences of default, providing both parties with clear expectations regarding their obligations.

While other documents play essential roles in the mortgage process, they do not specifically summarize the loan's terms in the same way. The loan agreement might be broader and include various contractual elements, but it is the promissory note that explicitly details the borrower's promise to repay the loan under the stated terms. The mortgage deed, on the other hand, represents the security interest in the property, acting as a lien to ensure the lender's rights over the real estate. Lastly, the property appraisal is an assessment of the property's value and is not a document that outlines loan terms. Thus, the promissory note is the key document in clearly defining the terms of the mortgage loan.