A loan is an arrangement in which one party borrows money from another party, often through formal agreements that detail the terms of repayment.
A loan contract is a document that acknowledges the debt of the borrower and establishes the terms by which that debt is to be discharged. It outlines the payment schedule, prepayment conditions, and what constitutes a default. In cases of mortgage loans, it also includes pledges of real property as collateral.
A mortgage note is a legal document that outlines the terms of a loan agreement secured by real estate property. It details the borrower's obligation to repay the lender, the loan amount, interest rate, repayment terms, and other provisions.
