What Set of Items Appears on a Loan Estimate?

A Loan Estimate is a three-page form that you receive after applying for a mortgage. The Loan Estimate tells you important details about the loan you have requested.

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Introduction

The Loan Estimate is a three-page form that you receive after applying for a mortgage. The form provides you with important information, such as the estimated interest rate, monthly payment, and closing costs for the loan. The Loan Estimate also contains contact information for your lender and loan servicer.

On the first page of the Loan Estimate, you’ll find:
-Loan terms: The amount of money you’re borrowing, the type of loan, the interest rate, and the length of time you have to repay the loan (the “term”).
-Projected payments: Estimates for your monthly mortgage payment, property taxes and insurance (if applicable), and any homeowners association dues (if applicable).
-Loan costs: An estimate of the fees and other costs associated with your loan. These include origination charges, discount points, appraisal fee, title insurance, and other third-party fees.
-Estimated cash to close: An estimate of how much money you will need to close on your home. This includes your down payment or equity stake in the home as well as any closing costs that are not included in your loan amount.

On the second page of the Loan Estimate, you’ll find:
-Prepayment penalty information: If your loan has a prepayment penalty, it will be disclosed here. A prepayment penalty is a fee charged if you pay off your loan early (before the end of the loan term). Not all loans have prepayment penalties.
-Lender credits: If your lender offers you a “lender credit” at closing (meaning they give you money to offset some of your closing costs), it will be disclosed here as a negative number. Lender credits are not common.
-Other disclosures: This section includes additional information about your loan such as whether interest rates may increase after consummation (closing) and if there is an escrow account for property taxes and/or insurance premiums.

On the third page of the Loan Estimate form, you’ll find contact information for your lender and loan servicer as well as a statement that says you received this form three days after submitting a mortgage application to a lender.

What is a Loan Estimate?

A Loan Estimate is a three-page form that you receive after applying for a mortgage. The form provides you with important information, including:

-The estimated interest rate, monthly payment, and total closing costs for the loan
-How much you’ll need to pay in upfront costs
-How your interest rate and monthly payments may change in the future
-What fees you’ll be charged (e.g., origination, discount, etc.)
-Information about the loan terms (e.g., fixed-rate or adjustable-rate)

The Loan Estimate replaces the Good Faith Estimate (GFE) and Truth in Lending disclosure (TIL) forms. You should receive a Loan Estimate within three business days of applying for a mortgage.

Who is Required to Provide a Loan Estimate?

Lenders are required to provide a Loan Estimate to borrowers within three business days of receiving a borrower’s loan application. The Loan Estimate replaces the Good Faith Estimate (GFE) and the early Truth-In-Lending (TIL) disclosure. The Loan Estimate must be delivered or placed in the mail no later than three business days after the lender receives the borrower’s loan application.

The following lenders are required to provide Loan Estimates:

-Mortgage bankers
– Savings associations
– Federally chartered savings banks
– Credit unions
– State chartered savings banks supervised by the Federal Deposit Insurance Corporation (FDIC)
– State chartered savings associations supervised by the FDIC
– State licensed branches and agencies of foreign banks registered with FDIC
Contact your lender if you have not received your Loan Estimate within three business days of submitting your loan application.

What Happens if I Receive a Loan Estimate After Applying for a Mortgage?

A Loan Estimate is a three-page form that you receive after applying for a mortgage. The form provides you with important information, such as the estimated interest rate, monthly payment, and closing costs for the loan.

If you applied for a mortgage and did not receive a Loan Estimate, chances are that your application was never reviewed by a lender. In this case, you should contact the lender to find out why you did not receive a Loan Estimate.

If you applied for a mortgage and received a Loan Estimate, but it was not within three business days of applying, the lender must provide you with an explanation as to why the delay occurred.

How is a Loan Estimate Used?

The Loan Estimate form is used by lenders to provide borrowers with important information about their loan. This form must be provided to borrowers within three business days of receiving their loan application. The Loan Estimate includes information about the loan amount, interest rate, monthly payments, and closing costs. This information will help borrowers compare different loans and choose the one that is best for their needs.

What are the Components of a Loan Estimate?

A Loan Estimate is a three-page document that you receive after applying for a mortgage. The Loan Estimate tells you important details about the loan you have requested.

You will receive a Loan Estimate within three business days of applying for a loan with a lender. The document must be provided to you by the lender free of charge.

The Loan Estimate includes information such as:
-The interest rate
-Monthly payment amounts
-Information about the loan’s term
-Details about the type of loan
-Estimated costs associated with the loan

How to Read a Loan Estimate

The Loan Estimate is a three-page form that you receive after applying for a mortgage. The form provides you with important information, such as the estimated interest rate, monthly payment, and closing costs for the loan.

The first page of the Loan Estimate explains your loan terms and gives you an overview of the estimated costs. The second page provides additional details about the estimated costs, and the third page gives you information about the company that is originating your loan.

Here are some tips for reading and understanding your Loan Estimate:

* Interest rate: This is the annual percentage rate (APR) of your loan, which is the cost of borrowing money over the life of the loan. The APR includes both the interest rate and any fees that are being charged to obtain the loan.

* Monthly payment: This is the estimated amount that you will need to pay each month in order to repay your loan. This amount includes both principal and interest payments.

* Estimated closing costs: This is an estimate of all of the fees that you will need to pay in order to close on your loan. These fees can include things like origination fees, appraisal fees, and title insurance premiums.

* Company information: This section provides contact information for the company that is originating your loan. This can be useful if you have any questions or need to provide any additional documentation during the application process.

What if I Have Questions About My Loan Estimate?

If you have questions about your Loan Estimate, contact your loan officer or lender.

The Consumer Financial Protection Bureau (CFPB) has published a series of tools and resources to help consumers understand the Loan Estimate form and what they can do with the information it provides. You may find these resources helpful:
-A consumer guide that walks you through the Loan Estimate form line by line
-A sample Loan Estimate form with explanations of each item
-A glossary of terms used on the Loan Estimate form
-A “What if?” tool that allows you to enter different loan scenarios to see how they might affect your Loan Estimate

Conclusion

A Loan Estimate must have seven distinct sections:

1. Loan Terms
2. Projected Payments
3. Cost Summary
4. Comparison of Options
5. Closing Costs Details
6. Additional Disclosures
7. Assumptions