Can Actual Mortgage Costs Differ From The Loan Estimate?

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.

You might also like