Which document outlines the terms and conditions of a mortgage?

The promissory note is the document that outlines the terms and conditions of a mortgage. It serves as a legal promise from the borrower to repay the borrowed amount, detailing not only the loan amount but also the interest rate, repayment schedule, and any other relevant terms related to the mortgage. This document is crucial because it establishes the borrower's obligation to repay the loan and provides the lender with a legal recourse in the event of default.

While other documents like the deed of trust and settlement statement are important in the mortgage process, they serve different purposes. The deed of trust transfers the property as security for the loan but does not outline the loan terms itself. The purchase agreement is related to the sale of the property but does not specify the repayment details of the mortgage. The settlement statement summarizes the closing costs and disbursements but does not govern the conditions of how the mortgage is to be paid back. Each of these documents plays a distinct role, but the promissory note is specifically focused on the borrower's promise to repay the loan under defined terms.