Which document identifies the terms of a mortgage and the responsibilities of the borrower and lender?

The mortgage note is the document that outlines the terms of a mortgage, including the principal amount, interest rate, and payment schedule, as well as the responsibilities of both the borrower and the lender. This legally binding document serves as a promise to repay the loan under specified conditions, making clear each party's obligations. It is essential for the borrower to understand the terms set out in the mortgage note, as it governs the repayment process and any repercussions of defaulting on the loan.

In contrast, while a mortgage deed is related to the security for the loan, it primarily focuses on the transfer of the property’s interest, and the deed of trust serves a similar function by facilitating the foreclosure process in some states. The loan application is simply a request for the loan and does not define the terms of the mortgage or the obligations of either party. Thus, the mortgage note is the key document that encompasses all necessary details of the loan agreement.