Loan Costs Other Costs
Total Closing Costs (J)
Closing Costs Financed (Included in Loan Amount)
Down Payment/Funds from Borrower
Deposit
Funds for Borrower
Seller Credits
Adjustments and Other Credits
Estimated Cash to Close
Calculating Cash to Close
Closing Cost Details
A. Origination Charges
% of Loan Amount (Points)
B. Services You Cannot Shop For
C. Services You Can Shop For
D. TOTAL LOAN COSTS A + B + C
E. Taxes and Other Government Fees
Recording Fees and Other Taxes
Transfer Taxes
F. Prepaids
Homeowner’s Insurance Premium ( months)
Mortgage Insurance Premium ( months)
Prepaid Interest ($ per day for days @ )
Property Taxes ( months)
G. Initial Escrow Payment at Closing
Homeowner’s Insurance $ per month for mo.
Mortgage Insurance $ per month for mo.
Property Taxes $ per month for mo.
H. Other
I. TOTAL OTHER COSTS (E + F + G + H)
J. TOTAL CLOSING COSTS
D + I
Lender Credits
Use your Loan Estimate to
understand your ARM
When you apply for a mortgage,
the lender gives you a document
called a Loan Estimate. It
describes important features of
the loan the lender is offering
you. This section illustrates the
parts of a Loan Estimate that are
specic features of ARM loans.
An interactive, online version of a
Loan Estimate sample is available
at: cfpb.gov/arm-explainer/
Loan Terms
Projected
Payments
Product
Save this Loan Estimate to compare with your Closing Disclosure.
Loan Estimate
LOAN TERM
30 years
PURPOSE Purchase ce
DATE ISSUED
PRODUCT
5/1 Adjustable Rate
APPLICANTS
LOAN TYPE
x
Conventional FHA VA _____________
LOAN ID # 1234567891330172608
RATE LOCK
x
NO YES
PROPERTY
Before closing, your interest rate, points, and lender credits can
change unless you lock the interest rate. All other estimated
SALE PRICE
closing costs expire on
Loan Terms
Can this amount increase after closing?
Loan Amount
$216,000
NO
Interest Rate
3%
YES
· Adjusts every year starting in year 6
· Can go as high as 8% in year 8
· See AIR Table on page 2 for details
Monthly Principal & Interest
See Projected Payments Below
for Your Total Monthly Payment
$910.66
YES
· Adjusts every year starting in year 6
· Can go as high as $1,467 in year 8
Prepayment Penalty
NO
Balloon Payment
NO
Does the loan have these features?
Projected Payments
Costs at Closing
Payment Calculation Years 1-5 Years 6 Years 7 Years 8-30
Principal & Interest
$910.66 $838 min
$1,123 max
$838 min
$1,350 max
$838 min
$1,467 max
Mortgage Insurance
Estimated Escrow
Amount can increase over time
+ 99
+ 341
+ 99
+ 341
+ 99
+ 341
+ ––
+ 341
Estimated Total
Monthly Payment
$1,290 $1,217 – $1,502 $1,217 – $1,729 $1,179 – $1,808
Estimated Taxes, Insurance
& Assessments
Amount can increase over time
$341
a month
This estimate includes
x
Property Taxes
x
Homeowner’s Insurance
Other:
In escrow?
YES
YES
See Section G on page 2 for escrowed property costs.
You must pay for other property costs separately.
Estimated Closing Costs
Includes in Loan Costs + in Other Costs –
$X,XXX
in Lender Credits. See details on page 2.
Includes Closing Costs. See calculating Cash to Close on page 2
Estimated Cash to Close
$XX,XXX
for details.
Visit www.consumernance.gov/learnmore for general information and tools.
LOAN ESTIMATE PAGE 1 OF 3 • LOAN ID # 123456789
Adjustable Interest Rate (AIR) Table
Adjustable
Interest Rate
(AIR) Table
LOAN ESTIMATE
Index + Margin 1 Year Cmt + 2.25%
Initial Interest Rate 3%
Minimum/Maximum Interest Rate 2.25% / 8%
Change Frequency
First Change Beginning of 61st month
Subsequent Changes Every 12 months after first change
Limits on Interest Rate Changes
First Change 2%
Subsequent Changes 2%
PAGE 2 OF 3 • LOAN ID # 123456789
ADJUSTABLE-RATE MORTGAGES USE YOUR LOAN ESTIMATE TO UNDERSTAND YOUR ARM 3