Understanding Your Loan Estimate

Primary source links checked August 26, 2026

General information only. This page is not a loan offer, application, approval, or personalized financial advice. Rates, costs, eligibility, and program rules depend on the provider, date, borrower, property, and loan terms.

What the document is for

A Loan Estimate summarizes important details of a mortgage loan you requested. Use it to confirm that the loan amount, product, rate structure, projected payment, closing costs, and cash to close match what you discussed.

If any item differs from what you expected, ask the lender to explain or correct it before you proceed.

What to compare

Compare Loan Estimates for the same loan type and amount issued on the same day. Review the interest rate, APR, monthly payment, mortgage insurance if applicable, origination charges, lender credits, cash to close, and the five-year cost shown in the Comparisons section.

APR is broader than the interest rate because it includes the rate and certain other charges. Do not use APR by itself to compare different product types.

Primary sources

CFPB Loan Estimate explainer ↗

CFPB guide to comparing Loan Estimates ↗

CFPB explanation of interest rate versus APR ↗