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.

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