Read your Loan Estimate box by box
Which fees can change
What it means
Closing costs fall into three groups. Some cannot increase at all, such as the lender's own charges. Some can increase only within a limited combined amount, such as services from the lender's provider list. Others, such as prepaids and services you chose yourself, can change. New disclosures are allowed only after certain changed circumstances.
Last reviewed against the primary sources listed below.
The three groups
| Group | Typical examples | Rule |
|---|---|---|
| Cannot increase | Lender's origination charges, transfer taxes | Zero tolerance |
| Limited increase | Recording fees, services from the lender's provider list | Combined increase capped |
| Can change | Prepaids, escrow, services you shop yourself | No set limit |
Changed circumstances
A lender can issue a revised estimate for specific reasons, such as information on your application changing or you asking to change the loan. The CFPB summary lists them.
If a fee rises beyond the rule
Ask the lender to explain it against the tolerance rules. Excess charges must be refunded.
Questions people have with the form in hand
Can my closing costs be higher than the Loan Estimate?
Some can and some cannot. Lender charges generally cannot increase, some third-party fees can rise only within a limit, and others such as prepaids can change.
What is a changed circumstance?
A specific event, such as new information about you or the property or a change you request, that allows the lender to issue a revised Loan Estimate.