What information must be included on a Loan Estimate?
Correct Answer
B) Estimated loan terms, projected payments, and closing costs
The Loan Estimate must include loan terms (amount, interest rate, monthly payment), projected payments over time, estimated closing costs, cash to close, and loan comparisons (APR, total interest percentage). It allows borrowers to compare offers from different lenders.
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Related Topics & Key Terms
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Related Concepts
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
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