Mortgage Disclosures
Loan Estimate Explained - Your Federally Standardized Mortgage Quote
The Loan Estimate (LE) is the single most useful document in mortgage shopping because every lender uses the exact same format. Master what each section means and you can compare offers apples-to-apples.
The 3 Pages
- Page 1 - Loan Terms & Projected Payments. Loan amount, interest rate, monthly P&I, prepayment penalty (rare), balloon, taxes, insurance, mortgage insurance, and total estimated monthly payment.
- Page 2 - Closing Cost Details. Sections A (Origination Charges - lender controlled), B (services you cannot shop), C (services you can shop), D-H (taxes, prepaids, escrows, initial deposits). THIS is the comparison page.
- Page 3 - Comparisons, Other Considerations. 5-year cost comparison, APR, total interest percentage (TIP), assumption rules, late payment fees, servicing, and refi/assumption rights.
See live rates to compare to your LE
Enter your scenario below and the pricer returns live wholesale rates. Compare against the LE you have - same loan amount, same lock period, same product.
Conventional Loan Facts
- Down payment as low as 3% for first-time homebuyers, 5% for others
- Down payment assistance programs available to fully cover the 3% down payment
- Private Mortgage Insurance (PMI) required below 80% LTV - automatically removed at 78%
- Maximum DTI typically 45%, up to 50% with strong compensating factors
- Minimum credit score generally 620; best rates at 740+
- Available for primary residence, second home, or investment property
- No upfront mortgage insurance premium - only monthly PMI if applicable
Frequently Asked Questions
What is a Loan Estimate?+
A Loan Estimate (LE) is a federally standardized 3-page mortgage quote required by the Truth in Lending Act and RESPA. Every lender must provide one within 3 business days of receiving a complete application. The format is identical across lenders so quotes are directly comparable.
Is a Loan Estimate the same as a rate quote?+
No. A rate quote is informal and not binding. A Loan Estimate is regulatory - it commits the lender to honor those costs within tolerance under federal rules. Always shop with LEs, not casual quotes.
Do I have to pay to get a Loan Estimate?+
No. Federal law prohibits lenders from charging anything beyond a credit report fee before delivering the LE. You should never pay an application fee to get a quote.
What is the most important page of the Loan Estimate?+
Page 2 - it contains the lender-controlled fees (Section A: Origination Charges), services you cannot shop for (Section B), services you can shop for (Section C), and the breakdown of taxes, prepaids, and escrows. This page is where you compare lender vs lender.
How long is a Loan Estimate valid?+
The lender must honor the LE for 10 business days unless you indicate intent to proceed. After lock, the LE becomes locked-in pricing within regulatory tolerance.
Can the rate or fees change after the LE?+
Some categories (lender fees, transfer taxes, prepaids paid to the lender) cannot increase. Other categories (services you shop for, prepaids paid to third parties) can change with notice. Major changes trigger a redisclosure and a new 3-day waiting period before closing.
How do I know if my Loan Estimate is competitive?+
Compare it against live wholesale rates for the same scenario. The pricer above shows real-time market pricing - if a wholesale rate is strictly better on rate, lender fees, and MI for your scenario, your LE is not competitive.
How to read an LE
Send LE for comparison
APR vs interest rate