Which document outlines the terms of a mortgage agreement?

The document that outlines the terms of a mortgage agreement is the Promissory Note. This document is a legal written promise to repay a loan under specified terms, including the principal amount, the interest rate, the repayment schedule, and the maturity date. It serves as evidence of the borrower's obligation to repay the borrowed funds.

The Promissory Note is crucial because it not only details the specifics regarding the loan but also sets forth the implications of default and the conditions under which the lender can pursue legal action to recover the unpaid amount. It's fundamental in both confirming the borrower's intentions and providing legal enforceability to the loan agreement.

In contrast, while other documents like the Good Faith Estimate, mortgage application, and Loan Estimate provide important information related to the loan process, they do not serve the same purpose as the Promissory Note in outlining the specific obligations of the borrower regarding repayment. The Good Faith Estimate offers different cost estimates associated with the loan, the mortgage application collects personal and financial information from the borrower, and the Loan Estimate presents an overview of expected loan costs after applying for a mortgage but does not detail the borrower's legal commitment to repay the loan.