Read your Loan Estimate box by box
Page 3: the comparison page
What it means
Page three is built for comparing offers. The In 5 Years figures show total payments and how much principal you would pay off in the first five years. The Total Interest Percentage shows total interest over the full term relative to the loan amount. Other Considerations covers appraisal, assumption, homeowners insurance, late payments, refinancing and servicing.
Last reviewed against the primary sources listed below.
Using the comparisons
Compare the In 5 Years total between two estimates for the same loan. If you expect to sell or refinance sooner, that figure matters more than the full-term totals.
Other Considerations worth reading
- Assumption: whether a future buyer could take over the loan.
- Servicing: whether the lender plans to service the loan or transfer it.
- Late payment: the grace period and fee.
The signature line
Signing page three confirms you received the estimate. It does not commit you to the loan.
Questions people have with the form in hand
What is the Total Interest Percentage?
It is the total interest you would pay over the full loan term, expressed relative to the loan amount. It helps compare how much interest different loans would cost.
Can you provide an example of a Loan Estimate?
The CFPB publishes sample Loan Estimates with each section labelled on its Loan Estimate explainer page.