What document outlines the terms of a mortgage?

The mortgage note is the correct document that outlines the terms of a mortgage. It serves as a legally binding agreement between the borrower and the lender, detailing the borrower's promise to repay the borrowed amount, the interest rate, and the payment schedule. This document is fundamental in establishing the specifics of the loan, including details such as the principal amount, payment terms, and implications of default.

While other documents like the mortgage deed and escrow agreement may be involved in the process of securing a mortgage, they serve different purposes. The mortgage deed formally transfers the property interest to the lender as security for the repayment, whereas the escrow agreement typically pertains to the arrangement where a neutral third party holds funds or documents until certain conditions are met. The mortgage application is primarily used to collect the necessary information about the borrower in order to evaluate creditworthiness and does not articulate the terms of the loan itself.