The Loan Estimate (LE) is a standardized 3-page document you’ll receive within 3 business days of completing a mortgage application. It’s designed for comparison — here’s how to use it.
Page 1: The Summary
The top of page 1 shows:
- Loan terms (amount, interest rate, APR)
- Monthly payment breakdown
- Does the interest rate have a prepayment penalty? Can it increase?
- Estimated total closing costs and cash to close
Key number: APR vs. Interest Rate The APR (Annual Percentage Rate) includes fees, making it a better comparison tool than rate alone. A loan with a lower rate but higher fees might have a higher APR than a loan with a slightly higher rate and lower fees.
Page 2: Closing Cost Details
Section A (Origination Charges): These are lender fees. Negotiable.
Section B (Services You Cannot Shop For): Appraisal, credit report. Not negotiable.
Section C (Services You Can Shop For): Title insurance, settlement agent. You can find your own providers.
Section E (Taxes and Other Government Fees): Transfer taxes, recording fees. Fixed.
Section G (Initial Escrow Payment at Closing): Prepaid property taxes and insurance.
Page 3: Comparisons and Contact
The “Comparisons” table shows:
- Annual Percentage Rate
- Total interest paid (5-year)
- Annual interest as a percent of loan
How to Compare Multiple LEs
Get LEs from at least 3 lenders within a 45-day window (multiple credit pulls within this window count as one inquiry).
Compare: Rate, APR, total Section A–H fees, estimated cash to close.
The lowest rate isn’t always the best deal — look at total cost over your expected hold period.
We provide a fully detailed LE and are happy to sit with clients and compare it to other offers they’ve received.