Which document typically outlines the terms of a mortgage agreement?

The document that typically outlines the terms of a mortgage agreement is the note and mortgage. The note serves as the borrower's promise to repay the loan and details the loan amount, interest rate, repayment schedule, and any applicable penalties for late payments. The mortgage, on the other hand, secures the loan by placing a lien on the property, which gives the lender the right to claim the property if the borrower defaults on their payments. Together, these documents serve as a comprehensive representation of the borrower's obligations and the lender's rights regarding the loan.

The other options do not fulfill the role of outlining the mortgage terms in the same way. The sales contract pertains to the purchase of a property, specifying the agreement between buyer and seller, rather than the loan terms. The loan estimate provides a summary of the loan costs and terms but is not the definitive agreement itself. Lastly, the title deed is a legal document that indicates ownership of the property but does not detail the loan arrangements. Thus, the note and mortgage are essential for a complete understanding of the mortgage agreement.