The loan estimate (LE) is a new mortgage disclosure form that went into effect October 3, 2015.
It’s a three page mortgage disclosure form that the lender must provide you with, within three business days of the lender receiving your complete loan application.
Your loan estimate will provide you with important information such as, total monthly payment, total closing costs for the loan, and the estimated interest rate. In addition, the loan estimate also provides the costs of the estimated taxes and insurance, and how the payment may change. Also, the loan estimate will show if there are any prepayment penalties or negative amortization.
The loan estimate uses very clear language and the design is very intuitive. Every lender is required to use the same loan estimate. This makes it much easier to compare mortgages.
View a sample loan estimate for the purchase of a home for $350,000.
The loan estimate is not a commitment to lend.