A mortgage Loan Estimate is just that — an estimate.
Your actual loan costs might be higher or lower than the estimate, within certain legally-specified limits for some items, and without defined limits for others.
Items with a 10% change limit include:
- Charges for recording services
- 3rd-party services on the list provided by the lender
Items which might change without legally-defined tolerances:
- Prepaid Interest
- Property Insurance Premiums
- Escrow or Reserve Deposits
Items with ZERO tolerance, that should not change:
- Transfer taxes
- Fees paid to the lender
- Fees paid to a mortgage broker, or to affiliates of the lender or the broker.
- Fees paid to any 3rd parties on the “CAN NOT SHOP” list provided on the Loan Estimate.
Compare the Loan Estimate and the Closing Disclosure before loan consummation.