Read your Loan Estimate box by box
Page 1, box by box
What it means
Page one has four parts. The header identifies the loan, its purpose, product and whether the rate is locked. Loan Terms shows whether the amount, rate or payment can rise and whether there is a prepayment penalty or balloon. Projected Payments shows the payment over time, including escrow. Costs at Closing gives the totals detailed on page two.
Last reviewed against the primary sources listed below.
The header
- Date issued and the lock status: if the rate is not locked, it can change.
- Loan term, purpose, product and loan type.
- The expiration date for the closing costs.
Loan Terms
Each line answers 'can this increase after closing?' with yes or no. Any yes deserves a follow-up question, especially for prepayment penalties, which the CFPB explains here.
Projected Payments and Costs at Closing
Projected Payments splits the payment into principal and interest, mortgage insurance and estimated escrow. Costs at Closing gives estimated closing costs and estimated cash to close, which page two breaks down.
Questions people have with the form in hand
What is on the Loan Estimate?
Loan terms, projected payments, estimated closing costs itemised in lettered sections, cash to close, comparison figures and other loan considerations, on a standard three-page form.
How many business days after you apply do you receive a Loan Estimate?
The lender must deliver or mail it within three business days of receiving your application.