What Is Loan Estimate?
Loan Estimate: A standard three-page form showing a loan's terms, payment and closing costs, sent within 3 business days of applying.
Also called: LE
The Loan Estimate (LE) is a standard three-page disclosure required by federal TRID rules. Lenders must provide it within three business days of receiving your application.
What's on it
- Page 1: loan amount, rate, monthly payment, whether the rate is locked, prepayment penalty or balloon payment, and estimated cash to close
- Page 2: itemized closing costs, split into loan costs and other costs, and a calculation of cash to close
- Page 3: comparisons, including the APR, total interest percentage and five-year costs
How to use it
Because every lender uses the same form, you can compare offers line by line. Look at the rate, section A origination charges, points and the APR.
Which fees can change
- No increase allowed: lender fees, and third-party services you can't shop for
- Up to 10% total increase: recording fees and third-party services you can shop for but chose from the lender's list
- Can change: prepaid items, escrow deposits and services you chose yourself
Good to know
Unbeatable's estimates use the same categories, so you can compare them with your official Loan Estimate.