Homeownership
Your mortgage Loan Estimate: a plain-language checklist
The numbers and terms to compare before choosing a mortgage lender.
Compare quotes from the same day
Mortgage rates change frequently. To make a useful comparison, request Loan Estimates for the same loan type, down payment, rate-lock period, and points on the same day.
Separate lender costs from other costs
Focus first on the interest rate, APR, points, origination charges, lender credits, and cash to close. Taxes, insurance, and some third-party charges may not meaningfully distinguish one lender from another.
- Rate and APR
- Points and lender credits
- Origination charges
- Estimated cash to close
- Whether the rate is locked
Calculate the break-even point
If one offer requires more upfront cost for a lower rate, divide that additional cost by the monthly savings. The result estimates how many months it may take to recover the upfront expense.
Put the guide to work
Explore your next step.
This article is educational and does not constitute individualized financial advice. Product terms and personal circumstances vary.