Last reviewed: 30 September 2026
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How to read your Loan Estimate, page by page
The short answer: the Loan Estimate is a standard three-page federal form that shows your loan’s main terms, your estimated monthly payment, your estimated closing costs and cash to close, and a few measures for comparing it with other offers.[1, 2] What this term means: “Loan Estimate” is the name of the form a lender gives you after you apply for most home loans; it is an estimate because some numbers can still change before closing.
Lenders use the same standard form, which is what lets you line two offers up side by side. The form itself tells you to save it so you can compare it with your Closing Disclosure later.[2] The Consumer Financial Protection Bureau (CFPB)’s advice is to ask different lenders for Loan Estimates for the same kind of loan, so the numbers are comparable.[1]
Page 1: the loan and the monthly payment
The top of page 1 carries your name and the property address, the loan term, purpose, product, and loan type, and the loan amount. The CFPB suggests checking that your name is spelled correctly, that the term, purpose, product and loan type match what you discussed with the lender, and, for a purchase, that the loan amount plus your down payment equals the sale price; if it does not, ask the lender why.[1]
The “Loan Terms” table then shows the interest rate, the monthly principal and interest payment, and whether the loan has a prepayment penalty or a balloon payment. For the loan amount, interest rate and monthly principal and interest, the form answers the question “Can this amount increase after closing?”[2] The regulation defines a balloon payment as a payment more than two times a regular periodic payment, and a prepayment penalty as a charge for paying off all or part of the principal before it is due.[2] The CFPB calls both features risky and suggests asking your lender about other options if your loan has one.[1]
Page 1 also carries a “Rate Lock” statement: whether the interest rate is locked and, if so, the date and time the lock ends. It comes with a statement that the interest rate, any points, and any lender credits may change unless the rate has been locked, and the date and time the estimated closing costs expire.[2] For what a lock does and what extending it can cost, see Rate locks, float-downs, and extension fees.
The “Projected Payments” table breaks out principal and interest, mortgage insurance, and estimated escrow (an account that holds money for items such as property taxes and homeowner’s insurance and pays them for you), and shows an “Estimated Total Monthly Payment.” A separate line estimates taxes, insurance and assessments and notes which of them are paid from your escrow account.[2] The CFPB points out that any of those items that are not escrowed you will have to pay directly, often in large lump sums.[1] Below that, page 1 summarizes “Closing Costs” and “Cash to Close,” the amount you will have to bring to closing in addition to money you have already paid.[1, 2]
Page 2: closing cost details
Page 2 itemizes the closing costs behind the page 1 totals. It is also where the form separates the services you can shop for from the services you cannot. Those details have their own guides: what mortgage closing costs include and services you can shop for. Two CFPB pointers belong here. First, compare the origination charges and the “Services You Cannot Shop For” totals across Loan Estimates from different lenders; the CFPB notes that lenders itemize origination charges more or less finely and that “it’s the total that matters.”[1] Second, if a number appears on the “Points” or “Lender Credits” line, ask whether you discussed that choice; the CFPB explains that points are an upfront fee paid in exchange for a lower interest rate, and lender credits are a rebate that may come with a higher rate.[1] A “Calculating Cash to Close” table shows how the cash-to-close figure was built.[1, 2] For an adjustable-rate loan, the CFPB notes there are extra tables on pages 1 and 2.[1]
Page 3: who you are dealing with, and the comparison measures
Page 3 lists contact information: the name and NMLS ID (the identification number in the Nationwide Multistate Licensing System) of the lender and the mortgage broker, if any, plus the name, NMLS ID, email address and phone number of the individual loan officer who is your primary contact.[2] The CFPB suggests checking that the loan officer you are working with is listed and asking questions if not, and notes that you can look a loan officer up by name or NMLS ID in the NMLS database, which in most cases shows whether the officer is authorized to operate in your state and whether there are disciplinary actions on the record.[1] Our guide to verifying a loan officer’s NMLS license walks through that lookup.
The “Comparisons” table gives three measures “to compare this loan with other loans”: the total you will have paid in principal, interest, mortgage insurance and loan costs after five years (and the principal you will have paid off); the Annual Percentage Rate (APR), described on the form as “your costs over the loan term expressed as a rate” that “is not your interest rate”; and the Total Interest Percentage, the total interest over the loan term as a percentage of the loan amount.[2]
“Other Considerations” covers items including the appraisal, whether a later buyer may assume the loan, the late-payment charge, a refinance caution, and whether the lender intends to service the loan itself or transfer it to another servicer.[2] If servicing is transferred, see what has to happen when your servicing gets sold. Finally, a signature line, if the form has one, only confirms that you received it; the form states “You do not have to accept this loan because you have signed or received this form.”[2]
The form at a glance
| Part of the form | What it shows | What the CFPB suggests |
|---|---|---|
| Top of page 1 | Name, property, term, purpose, product, loan type, loan amount | Check the spelling and that each item matches what you discussed[1] |
| Loan Terms | Interest rate, monthly principal and interest, prepayment penalty, balloon payment, and whether amounts can increase[2] | Ask about other options if there is a prepayment penalty or balloon payment[1] |
| Rate Lock | Whether the rate is locked, until when, and when estimated closing costs expire[2] | Check whether the rate is locked and until when[4] |
| Projected Payments | Principal and interest, mortgage insurance, estimated escrow, estimated total monthly payment[2] | Make sure you are comfortable with the total, and budget for any items not escrowed[1] |
| Costs at Closing | Estimated closing costs and estimated cash to close[2] | Check that you have enough cash on hand[1] |
| Closing Cost Details (page 2) | Itemized loan costs and other costs, points, lender credits, cash-to-close calculation[2] | Compare origination charges and unshoppable services across lenders; shop for the others[1] |
| Contact information (page 3) | Lender, broker if any, and loan officer, with NMLS IDs[2] | Check that your loan officer is listed; look up the NMLS ID[1] |
| Comparisons (page 3) | Five-year totals, APR, Total Interest Percentage[2] | Use them to compare Loan Estimates for the same kind of loan[1] |
Steps to take
- Ask each lender you are considering for a Loan Estimate for the same kind of loan, so the numbers line up.[1]
- Read page 1 against what you expected: loan amount, rate, total monthly payment and cash to close. Ask the lender to explain anything that is not what you expected.[1]
- Compare the totals for origination charges and for services you cannot shop for, then the APR and Total Interest Percentage.[1]
- Look up the NMLS ID printed on page 3 using our NMLS guide.
- Keep the form. Your Closing Disclosure is meant to be compared with it; see how to check your Closing Disclosure against your Loan Estimate.[2]
It is an estimate: what can still change
Some of the numbers on a Loan Estimate are allowed to change by closing and some are not. The CFPB sorts closing costs into three groups: costs that can increase by any amount, costs that can increase by up to 10 percent in total, and costs that cannot increase at all, with an exception when there is a “change in circumstances.”[4] Our guide to tolerance categories and cure requirement under the TILA-RESPA Integrated Disclosure (TRID) rule covers that in detail, and our TRID disclosure timeline covers when the Loan Estimate and Closing Disclosure are due.
This page covers the United States federal rule for most closed-end mortgages. Canada uses different disclosure rules; for the Canadian framework start with Canada’s Cost of Borrowing (Banks) Regulations, explained.
When we update this page
We revise this page, and log the change, when any of the following happens:
- The CFPB or Congress changes the Loan Estimate content rule (12 CFR § 1026.37) or the prescribed form.
- The CFPB revises its Loan Estimate explainer in a way that changes the advice summarized here.
- A reader reports an error we confirm.
If something here looks wrong, report an error; we review reports within 5 business days.