The Official Disclosure is Called the Loan Estimate (LE), Lenders Must Provide Within 3 Business Days of a Mortgage Application.
Listed below is a completed sample of a Fixed Rate Loan Estimate from the Consumer Financial Protection Bureau (CFPB).
The Loan Estimate is a standardized, three-page form that breaks down the key features and costs of your potential loan:
📑 Page 1: Loan Terms and Estimated Payments
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Loan Terms: Specifies the loan amount, interest rate, and whether the loan can increase after closing.
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Projected Payments: Estimates your total monthly payment, including principal, interest, mortgage insurance, and estimated escrow (for taxes and insurance).
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Costs at Closing: Provides a summary of the Estimated Closing Costs and the Estimated Cash to Close.
💰 Page 2: Closing Cost Details
This page breaks down the closing costs into three main categories:
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A. Origination Charges: Fees charged by the lender, which are generally non-negotiable and have a zero-tolerance rule for change at closing.
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B. Services You Cannot Shop For: Fees for services like the appraisal and credit report, which can’t change by more than 10%.
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C. Services You Can Shop For: Fees for services like Title Search, Title Insurance, and Survey, which have no limit on how much they can change, as you select the provider.
✨ Page 3: Comparisons and Contact Information
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Comparisons: Shows two key metrics:
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In 5 Years: The total you will have paid and the principal you will have paid off.
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Annual Percentage Rate (APR): Your overall cost of borrowing, expressed as a rate, including interest and most fees.
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Total Interest Percentage (TIP): The total interest you will pay over the loan term as a percentage of the loan amount.
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Servicing & Assumption: Indicates if the lender intends to service your loan and if the loan can be assumed by a new owner.