understanding the loan estimate form

calculating cash to close

All itemized amounts from this page are totaled to determine the estimated amount the buyer will need to bring to closing.

lender licensing

Allows consumers to research the lender and loan officer using the Nationwide Mortgage Licensing System. page 3

comparisons

Allows the borrower to determine if loans from different lenders or different interest rates are preferable.

other costs

Itemized amounts for taxes, prepaid items, and lender credits.

other considerations

Lists certain borrower rights related to obtaining a loan and how it may be handled in the future.

loan costs

Shows the consumer how much they will pay for the lender to make the loan, including third-party services.

prepayment penalty

The Loan Estimate warns the client if the loan includes this potentially risky feature.

monthly principal & interst

The form states whether or not this amount is adjustable. If it's adjustable, additional information is included with the amount shown.

loan terms block

The loan amount plus the down payment should equal the sale price of the home.

estimated cash to close

This is the amount the borrower is expected to bring to closing.

estimated monthly paymeny

This section shows the total amount the client should expect to pay each month on the mortgage.

monthly principal and interest

amount will make up the majority of the client's monthly mortgage payment. However, the actual payment will be higher, given the addition of taxes and insurance.

origination charges

are the fees that the lender charges to the client for making the loan. They're included in the charge shown on page one of the Loan Estimate form. page 2

other costos

column are costs that are associated with transferring the property and owning the home, as well as obtaining the loan page 2

loan estimate form

designed to provide disclosures that will be helpful to consumers in understanding the key features, costs, and risks of the loan for which they're applying, no later than 3 days after applying for loan.

interest rate

includes information about how it will adjust and the way the interest rate will change.

closing disclosure

is designed to provide final details about the loan the consumer selected.

estimated closing costs

is the amount the client is being charged to get the loan and transfer ownership of the property.

estimated cash to close

is the amount the client will pay at closing, in addition to any money that has already been paid.

lender credits

line (under section J), it's a rebate from the lender that offsets some of the closing costs. page 2

calculating cash to close

section is where all the itemized amounts are totaled to determine the estimated cash the buyer will need to bring to closing.

projected payments

section shows the amounts that will comprise each monthly payment.