What information is required on a Loan Estimate for residential mortgage loans?

The Loan Estimate is a vital document provided to borrowers that outlines essential information about a mortgage loan they are considering. This document is designed to help consumers understand the terms of the loan, making it easier to compare offers from different lenders.

The projected interest rate is crucial as it directly impacts the borrower's monthly payment and the overall cost of the loan over its lifetime. In addition, borrowers need to know what their expected monthly payment will be, as this helps them assess their ability to manage the loan financially.

Moreover, a breakdown of closing costs on the Loan Estimate is required, as these costs can vary significantly between different loans. This transparency allows borrowers to see the various fees associated with obtaining the loan—such as origination fees, title insurance, and appraisal fees—so they can make informed decisions.

Therefore, both the projected interest rate and a detailed breakdown of closing costs must be included on a Loan Estimate to provide a comprehensive view of the loan's financial commitment. This combination helps ensure that borrowers are fully informed about their potential mortgage obligations before they make a decision.