The Loan Disclosure details the final costs and terms of the loan arrangement. The form and details are set by regulation; here’s what you can expect on Page 1.
- Loan Amount. The total sum you are borrowing.
- Interest Rate. The % paid to borrow, not including fees.
- Terms of balloon payment (if there is one).
- Terms of pre-payment penalties, if applicable.
- Projected Payments over the life of the loan, including:
- Principal & Interets
- Mortgage Insurance
- Estimates of Escrow Payments, which usually do change over time.
- Closing Costs – details of expenses required to close the loan.
- Cash To Close
This form must be provided at least 3 business days before loan consummation.