What financial document outlines the terms of a mortgage?

The mortgage note is the correct answer because it is the primary financial document that outlines the terms of the mortgage agreement between the borrower and the lender. This document specifies critical terms, including the loan amount, interest rate, repayment schedule, and any penalties for late payment or default. Essentially, the mortgage note acts as a legal contract that binds both parties to the agreement and provides clarity on their rights and obligations.

In contrast, a credit report provides information about an individual's credit history and creditworthiness but does not define the terms of a mortgage. The loan estimate is a standard document that outlines the estimated costs and terms of a mortgage, but it is not the definitive legal agreement. A disclosure statement typically contains required information about the loan and its terms, but it is not the document that executes the mortgage agreement.