How to read a Loan Estimate

Page one of the Loan Estimate shows the loan amount, interest rate, monthly principal and interest, and whether the rate can change. It also shows the total monthly payment and an estimate of taxes and insurance.

Page two itemizes closing costs in sections: origination charges (lender fees), services you can shop for, and services the lender selects. Page three summarizes total closing costs, cash to close, and other key comparisons (e.g. in 5 years, total payments).

When you have multiple Loan Estimates, use the same loan scenario so the numbers are comparable. Then compare rate, APR, total closing costs, and cash to close across lenders.

Entering each estimate’s key numbers into a comparison view lets you see them side by side without flipping between PDFs.