Definition
A standardized three-page document that lenders must provide within three business days of receiving a mortgage application. It details the estimated interest rate, monthly payment, closing costs, and other loan terms. The Loan Estimate allows consumers to compare offers from different lenders on an apples-to-apples basis. It replaced the older Good Faith Estimate (GFE) form.
Related Mortgage Terms
- Annual Percentage Rate (APR)
The total annual cost of a mortgage expressed as a percentage, including the int...
- Closing Costs
Fees and expenses paid at the finalization of a real estate transaction, typical...
- Closing Disclosure
A five-page standardized form that itemizes all the final details of your mortga...
- Amortization
The process of paying off a mortgage through regular monthly payments of princip...
- Appraisal
A professional assessment of a property's market value conducted by a licensed a...
Understanding mortgage terminology helps you compare loan offers and make informed decisions. Use our mortgage calculator to see how these terms affect your monthly payment.