Page 1 — Loan Terms, Projected Payments, Costs at Closing
Loan Terms
- Loan Amount: amount borrowed.
- Interest Rate: annual rate.
- Monthly Principal & Interest: monthly payment excluding taxes/insurance.
- Prepayment Penalty: if yes, max amount.
- Balloon Payment: if yes, amount and date.
Projected Payments
Table projecting monthly payments over the term. Includes:
- Principal & Interest.
- Mortgage Insurance (if applicable).
- Estimated Escrow (property taxes + home insurance).
- Total Estimated Monthly Payment.
Estimated Taxes, Insurance & Assessments is an annualized range. For a Canadian: these numbers are often understated in coastal zones (hurricane insurance).
Costs at Closing
- Estimated Closing Costs: total fees (page 2).
- Estimated Cash to Close: how much you'll wire on closing day.
Page 2 — Closing Cost Details
Itemized fees. Five sections:
A. Origination Charges
Lender fees: application fee, origination fee, points (if paid). For foreign national: typically 0.5–1.5 % of loan.
B. Services You Cannot Shop For
Services chosen by the lender (appraisal fee, credit report fee, flood determination). The borrower cannot negotiate the provider.
C. Services You Can Shop For
Services where the borrower can compare (title insurance, settlement agent fee, survey fee). The lender provides a list of recommended providers but the borrower can choose their own.
D. Total Loan Costs
A + B + C. The "strict" cost of the loan.
E. Taxes and Other Government Fees
Doc stamps tax (FL: 0.70 % of price), intangible tax on the mortgage (0.002 %), recording fees.
F. Prepaids
First home insurance payment, prepaid property taxes, prorated interest from closing day to end of month, first flood/wind insurance payment if required.
G. Initial Escrow Payment at Closing
Multi-month tax and insurance reserve required by the lender.
H. Other
HOA capitalization fee, transfer fees, owner's title insurance policy, etc.
Page 3 — Additional Information, Comparisons, Lender Info
Comparisons
Critical section for comparing multiple LEs:
- In 5 Years: how much you'll have paid in principal + interest + fees after 5 years.
- Annual Percentage Rate (APR): effective rate including fees. Higher than nominal rate. The best measure for comparing two LEs from different lenders.
- Total Interest Percentage (TIP): percentage of borrowed amount you'll pay in interest over the term.
Other Considerations
- Appraisal: you'll receive a copy after evaluation.
- Assumption: can the next person take over the mortgage?
- Homeowner's Insurance: required.
- Late Payment: late fee.
- Refinance: not guaranteed at a better rate.
- Servicing: the lender may transfer servicing to another.
Tolerances and legally allowed changes
The TRID rule splits LE fees into three tolerance categories:
- Zero tolerance: these fees cannot increase from LE to Closing Disclosure: origination charges, transfer taxes, services where the lender didn't authorize shopping (B).
- 10 % tolerance: can increase but collectively maximum 10 % above LE: services where borrower shopped (C), recording fees.
- Unlimited tolerance: can increase without limit: prepaids (F), initial escrow (G), homeowner's insurance, taxes.
If zero or 10 % tolerance fees exceed limits at Closing Disclosure, the lender must refund the difference.
Comparing multiple Loan Estimates
Four numbers to isolate from each LE for lender comparison:
- APR (page 3, top). The only rate that includes loan fees.
- Total Loan Costs (D, page 2). Strict loan costs.
- Cash to Close (page 1, bottom). What you'll really wire.
- In 5 Years (page 3, comparisons). Total cost paid after 5 years (useful if you'll likely sell before loan end).
Across 3 different LEs, cumulative difference can reach US$10,000–$25,000 over the term. Always negotiate.
Common pitfalls
- Comparing nominal rate instead of APR. Only APR reflects true cost.
- Ignoring origination fees. 1 % origination on a $350,000 loan = $3,500.
- Underestimating FL home insurance. The LE often projects a low range; request a real FL quote.
- Not checking "shoppable" services. You can save $500–$2,000 by choosing your own title company.
- Not signing to acknowledge the LE. Signing creates no obligation, just receipt acknowledgment.
Every figure, rate, threshold, and deadline in this guide is drawn from a verifiable primary source listed at the bottom of the page. The article is updated whenever the underlying rules change, with a fresh review date stamped at the top.
Sources and references
All sources were publicly accessible at the last review date. Figures and rules may change; verify the current version before any decision.
- CFPB Loan Estimate — official explainer. consumerfinance.gov/loan-estimate
- TILA-RESPA Integrated Disclosure (TRID) — 12 CFR §1026.37. consumerfinance.gov/§1026.37
- Truth in Lending Act (TILA). consumerfinance.gov/regulations/1026
- Real Estate Settlement Procedures Act (RESPA). hud.gov/respa
Logical next step
The LE comes early. The Closing Disclosure comes 3 days before closing — understand the differences.