A Loan Estimate is the standard three-page form a lender has to send within three business days of your mortgage application, and you read it in three passes. Page 1 shows the loan and the monthly payment. Page 2 lists every closing cost, grouped in a way that tells you which ones can change. Page 3 lets you compare one lender against another.
The PDF probably landed this week, maybe from two lenders at once. The number you care about is on page 1, but the numbers that decide if it holds up are on page 2.
Each fee on page 2 falls into one of three federal groups. Some can’t go up at all. Some can rise, but only 10 percent as a group. The rest have no set limit, because the lender doesn’t control them. Once you know which group a line belongs to, you know where your risk is, and the sample form below tags every line for you.
What Does Each Line on a Loan Estimate Mean?
Every lender in the country uses the same form, which is what makes a line-by-line read possible. The sample below is a Massachusetts purchase, a $650,000 house in Beverly with 20 percent down and a $520,000 30-year fixed loan. Tap or click any line to see what it is, who sets it and if it can change before closing. The numbers are our own example, not anyone’s real loan. The rate is Freddie Mac’s national survey average for September 17, 2026, used only to fill in the form.
Sample Loan Estimate
A $650,000 purchase in Beverly with 20 percent down. Sample numbers, not an offer. Tap or click any line.
Can't go upCan rise, 10% cap as a groupNo set limitCan move until the lender locksAdds up other linesCheck it matches
Page 1 of 3, the loan and the payment
Loan terms
Loan Term, Purpose, Product, Loan Type30 years, Purchase, Fixed Rate, Conventional
Loan Term, Purpose, Product, Loan Type
Check it matches
What it is
The shape of the loan you asked for. The lender fills these in from your application.
Who sets it
You choose them. The lender writes them down.
Can it change before closing?
Only if you or the lender change the loan, and then you get a new estimate. If any of these four don’t match what you discussed, ask the lender about it before you pay any fee.
Rate LockNO
Rate Lock
Can move until the lender locks
What it is
Says if the lender has locked your interest rate, and if it has, the date and time the lock ends. NO means the rate on this form is the lender’s pricing today, with no promise attached.
Who sets it
The lender. A lock is the lender’s commitment to hold a rate for a set period.
Can it change before closing?
Until the lender locks, the rate, the points and any lender credits can all move. When the lender does lock, it has to send you a revised estimate within three business days.
Estimated closing costs expire10/06/2026 at 5:00 pm EDT
Estimated closing costs expire
Check it matches
What it is
The deadline for telling the lender you want to go ahead. The rules give you at least 10 business days.
Who sets it
The lender sets the date, within the federal rule.
Can it change before closing?
Say you intend to proceed after this date and the lender may reissue the estimate with new costs. Before you tell anyone to go ahead, write this date down.
Loan Amount$520,000
Loan Amount
Check it matches
What it is
What you’re borrowing. On a purchase, the loan plus your down payment should equal the price. Here that’s $520,000 plus $130,000, which is $650,000.
Who sets it
You and the lender, from the price and the down payment in your application.
Can it change before closing?
It changes if the price or the down payment changes, and that change brings a revised estimate.
Interest Rate6.950% (sample)
Interest Rate
Can move until the lender locks
What it is
The rate the lender is charging on this loan. This sample uses Freddie Mac’s national average for September 17, 2026. Nobody is offering it to you.
Who sets it
The lender, from your credit, down payment, loan type and the day’s pricing.
Can it change before closing?
It can move until the lender locks it. Once locked, it holds until the lock’s end date unless something about your file changes.
Monthly Principal and Interest$3,442
Monthly Principal and Interest
Adds up other lines
What it is
The part of the payment that repays the loan and pays the interest. $520,000 at 6.95 percent over 30 years works out to $3,442 a month.
Who sets it
Math on the loan amount, rate and term.
Can it change before closing?
It moves only when the rate or the loan amount moves.
Prepayment Penalty, Balloon PaymentNO, NO
Prepayment Penalty, Balloon Payment
Check it matches
What it is
These say if you’d pay a fee for paying the loan off early, and if a large lump sum comes due at the end. The CFPB calls both features risky.
Who sets it
The loan product the lender is offering.
Can it change before closing?
You want NO on both lines. A YES is a question for the lender before you go further.
Projected payments
Estimated Escrow$736 a month
Estimated Escrow
No set limit
What it is
The property tax and homeowner’s insurance collected with each payment. At Beverly’s FY2026 rate of $10.81 per $1,000, a $650,000 house pays about $586 a month in tax. Insurance here is $150.
Who sets it
The town sets the tax. Your insurance company sets the premium. The lender only estimates both.
Can it change before closing?
No set limit, because the lender doesn’t control either number. Ask if they used the house’s actual tax bill or an estimate from the price.
Estimated Total Monthly Payment$4,178
Estimated Total Monthly Payment
Adds up other lines
What it is
Principal and interest plus escrow, and mortgage insurance if you had any. $3,442 plus $736.
Who sets it
Adds up the lines above it.
Can it change before closing?
It moves when any of its parts move, mostly the tax and insurance estimates.
Costs at closing
Estimated Closing Costs$11,848
Estimated Closing Costs
Adds up other lines
What it is
Everything on page 2. $5,095 of loan costs plus $6,753 of other costs, minus any lender credits.
Who sets it
Adds up page 2.
Can it change before closing?
Each piece follows its own rule. Open the page 2 lines to see which pieces can move.
Estimated Cash to Close$109,348
Estimated Cash to Close
Adds up other lines
What it is
What you bring to closing. Closing costs plus the down payment, minus the deposit you already paid the seller. $11,848 plus $130,000 minus $32,500.
Who sets it
Adds up page 2’s cash to close table.
Can it change before closing?
It moves with the closing costs, and with seller credits or any change to your deposit.
Page 2 of 3, closing cost details
Loan costs
A. Origination Charges$1,790
A. Origination Charges
Can’t go up
What it is
What you pay the lender, or the loan originator, for making the loan. Here a $695 processing fee and a $1,095 underwriting fee.
Who sets it
The lender. This is the lender’s own price, so it’s the first section to compare between lenders.
Can it change before closing?
It can’t go up unless there’s a valid reason for a revised estimate, like a change you asked for. If it’s higher at closing without one, the lender owes you the difference.
% of Loan Amount (Points)(blank)
% of Loan Amount (Points)
Can move until the lender locks
What it is
Points are money you pay up front to buy a lower rate. The rule says this line must be blank when you aren’t paying any, which is what blank means here.
Who sets it
You and the lender, as a trade between rate and cash.
Can it change before closing?
Points count as the lender’s fee, so they can’t go up on their own. If the lender hasn’t locked the rate yet, they can change when the lender locks and reissues the estimate.
B. Services You Cannot Shop For$805
B. Services You Cannot Shop For
Can’t go up
What it is
Services the lender requires and chooses the company for. Here an appraisal ($650), a credit report ($65), a flood check ($10) and a tax service fee ($80).
Who sets it
The lender chooses the companies. You can’t swap them out.
Can it change before closing?
Because you weren’t allowed to shop, these can’t go up at closing. Compare this total between lenders too.
C. Services You Can Shop For$2,500
C. Services You Can Shop For
Can rise, 10% cap as a group
What it is
Services the lender requires but lets you choose the company for, mostly title work. The lender has to hand you a written list of companies to choose from.
Who sets it
The companies you end up using.
Can it change before closing?
Choose from the lender’s list and these can rise, but this section plus the recording fees can’t grow more than 10 percent as a group. Choose a company that isn’t on the list and there’s no set limit.
Title – Settlement Agent Fee$900
Title – Settlement Agent Fee
Can rise, 10% cap as a group
What it is
In Massachusetts this is usually the closing attorney. The state’s highest court ruled in 2011 that a closing needs an attorney taking part on behalf of the mortgage lender.
Who sets it
The closing attorney’s firm.
Can it change before closing?
Same 10 percent group as the rest of section C when you choose from the list. This attorney works for the lender. You can hire your own attorney too, and that fee isn’t on this line.
Title – Lender’s Title Insurance$1,150
Title – Lender’s Title Insurance
Can rise, 10% cap as a group
What it is
A policy that protects the lender if a problem with the title turns up later. The lender requires it.
Who sets it
The title insurance company, through the closing attorney.
Can it change before closing?
In the 10 percent group when you use a company from the list.
Other costs
E. Recording Fees and Other Taxes$360
E. Recording Fees and Other Taxes
Can rise, 10% cap as a group
What it is
What the registry charges to record your deed and your mortgage. At the Essex South Registry of Deeds that’s $155 for the deed and $205 for the mortgage.
Who sets it
The state registry’s fee schedule.
Can it change before closing?
Recording fees count in the same 10 percent group as section C.
Transfer Taxes(blank)
Transfer Taxes
Can’t go up
What it is
Massachusetts charges a deeds excise of $4.56 per $1,000 when a house sells, and state law puts it on the person who signs the deed, the seller. The rule says a buyer’s line must be blank when the buyer isn’t paying it.
Who sets it
The state sets the tax. The seller pays it at closing.
Can it change before closing?
Transfer taxes are zero tolerance. If this line has a number on your purchase, ask why.
F. Prepaids$3,285
F. Prepaids
No set limit
What it is
Costs paid ahead at closing. A year of homeowner’s insurance ($1,800) and 15 days of interest at $99.01 a day ($1,485), covering closing day to the end of the month.
Who sets it
Your insurance company, and the calendar. Prepaid interest depends on your closing date.
Can it change before closing?
No set limit. Close earlier in the month and prepaid interest goes up.
G. Initial Escrow Payment at Closing$2,058
G. Initial Escrow Payment at Closing
No set limit
What it is
The cushion that starts your escrow account. Two months of insurance ($300) and three months of property tax ($1,758).
Who sets it
The lender’s escrow math, based on the town’s tax bill dates and your insurance.
Can it change before closing?
No set limit. Leave it out when comparing lenders, since the tax and insurance behind it aren’t the lender’s to set.
H. Other$1,050
H. Other
No set limit
What it is
Costs you’re likely to pay that the lender doesn’t require. Here owner’s title insurance, marked (optional), which protects you rather than the lender.
Who sets it
You decide if you want it. The title company sets the price.
Can it change before closing?
No set limit, since the lender doesn’t require it. Ask the closing attorney what it covers before you decide.
J. Total Closing Costs and Lender Credits$11,848, credits $0
J. Total Closing Costs and Lender Credits
Adds up other lines
What it is
Loan costs plus other costs, minus lender credits. A lender credit is money the lender puts toward your costs, usually in exchange for a higher rate.
Who sets it
Adds up sections A through H. The lender sets any credit.
Can it change before closing?
Lender credits can change when the lender locks the rate. Ask to see the estimate with and without credits.
Calculating Cash to Close$109,348
Calculating Cash to Close
Adds up other lines
What it is
How the lender reached page 1’s cash figure. Closing costs ($11,848), plus down payment ($130,000), minus the deposit already paid ($32,500).
Who sets it
Adds up the lines above, using your purchase contract.
Can it change before closing?
It moves with the closing costs and any seller credit. Bring your purchase and sale agreement to check the deposit.
Page 3 of 3, additional information
Comparisons
In 5 Years$211,623 paid, $30,778 principal
In 5 Years
Adds up other lines
What it is
The total you’d pay over the first 60 payments, counting principal, interest, mortgage insurance and loan costs. The second number is how much of the loan you’d have paid off by then.
Who sets it
Math on the loan terms and section D.
Can it change before closing?
It’s the quickest single number for comparing two estimates for the same loan amount.
Annual Percentage Rate (APR)7.032%
Annual Percentage Rate (APR)
Adds up other lines
What it is
The loan’s cost over its full term, fees included, expressed as a rate. The form itself says it isn’t your interest rate.
Who sets it
Math on the rate and the lender’s finance charges.
Can it change before closing?
It moves with the rate and the fees. A bigger gap between the rate and the APR means more fees.
Total Interest Percentage (TIP)138.59%
Total Interest Percentage (TIP)
Adds up other lines
What it is
All the interest you’d pay over 30 years as a percentage of the loan. Here about $1.39 of interest for every dollar borrowed.
Who sets it
Math on the rate and term.
Can it change before closing?
It moves with the rate. Most useful when two estimates have the same term.
Choose any line on the form to see what it is, who sets it and whether it can change before closing.
Layout follows the federal model form. Every figure is our own example arithmetic. The rate is Freddie Mac’s national average for September 17, 2026, used only to fill in the form.
Three lines on the sample deserve a closer look. The Transfer Taxes line is blank, the Settlement Agent Fee pays an attorney who doesn’t work for you, and the Rate Lock line says NO. The sections below explain all three, and the colored dot beside each line tells you which cost group it’s in.
When Should Your Loan Estimate Arrive?
The lender has three business days from your application to send it, under the federal rule at 12 CFR 1026.19. For that count, a business day is any day the lender’s offices are open for business. The clock starts once the lender has six things from you. Those are your name, your income, your Social Security number so it can pull credit, the property address, an estimate of the property’s value and the loan amount you want.
A mortgage broker can send the estimate instead of the lender. The rule allows that, and the lender stays responsible for what the form says. Either way, nobody can charge you a fee until you’ve received the estimate and said you want to go ahead. The one exception is a reasonable fee for pulling your credit report.
A Loan Estimate isn’t an approval. The CFPB says the lender hasn’t approved or denied anything when it sends one. The estimate describes the loan the lender expects to offer, and the Closing Disclosure you receive at least three business days before closing is the final version. If you’ve given all six items and three business days have passed, ask the lender which day it counted as your application date.
Which Numbers on a Loan Estimate Can Change?
Page 2 looks like a bill, but every figure on it is an estimate, and federal tolerance rules decide how far each one can move between now and closing. The rules sort each fee into three groups. The CFPB’s compliance guide for lenders spells out which charges go where.
- Can’t go up. Section A, the lender’s own origination charges, including any points. Section B, the services the lender requires and chooses the company for, like the appraisal and the credit report. And transfer taxes.
- Can rise 10 percent as a group. Recording fees, plus the section C services you’re allowed to shop for, when you choose a company from the lender’s written list. One fee can go up while another goes down. The group’s total can’t grow more than 10 percent.
- No set limit. Prepaid interest, homeowner’s insurance, the deposit that starts your escrow account, property taxes and services you arrange yourself off the lender’s list. Also anything the lender doesn’t require, like owner’s title insurance.
The no-limit group still has a rule. The lender has to base those numbers on the best information it had when it wrote the estimate. The CFPB guide treats an unreasonably low tax estimate as a charge that can’t go up. When a lender charges more than a group allows, it owes you the difference within 60 calendar days after closing.
Use the groups to decide what to question. A section A fee that rises at closing is a problem. A higher insurance premium in section F usually means your real insurance quote came in. For section C, ask whoever sent the estimate to confirm the prices came from their own provider list, and to give you that list in writing.
Why Does the Rate Lock Line Matter?
The Rate Lock line on page 1 tells you if the lender has locked your interest rate, and if so, the date and time that lock ends. A NO means the rate is the lender’s pricing on the day it wrote the estimate. Until the lender locks, the rate, the points and any lender credits can all move. When the lender does lock, it has three business days to send you a revised estimate.
Right beside it is a second date, when the other estimated closing costs expire. You get at least 10 business days to say you want to go ahead. Wait longer and the lender can reissue the estimate with new costs.
Outside a lock or an expired offer, a lender can revise the estimate only for specific reasons. You asked for a change, something unexpected happened, or information in your file changed or turned out to be wrong, such as an appraisal below the value you listed. The lender then has three business days to send the new version. Ask for every revision in writing with the reason stated, so you can match it to the rule.
What’s Different About a Massachusetts Loan Estimate?
Start with the Transfer Taxes line in section E. On a Massachusetts purchase it’s normally blank, and the federal form requires a blank when the buyer isn’t paying the tax. State law puts the deeds excise on the person who signs the deed, and on a sale that’s the seller. The rate is $4.56 per $1,000 of the price. If your estimate shows a number on that line, ask what it’s for.
Recording fees are the buyer’s. The Essex South Registry of Deeds charges $155 to record a deed and $205 to record a mortgage, so a Beverly or Salem buyer’s recording line starts at $360. Those fees count in the 10 percent group.
The Title – Settlement Agent Fee in section C usually pays the closing attorney. In a 2011 decision, the Supreme Judicial Court said a Massachusetts closing requires “not only the presence but the substantive participation of an attorney on behalf of the mortgage lender.” That attorney works for the lender. You can hire your own attorney, and that fee won’t be on this line. Our guide to who you’ll work with on a Massachusetts purchase explains who does what.
The estimate also lists two kinds of title insurance. Lender’s title insurance protects the lender, and the lender requires it. Owner’s title insurance protects you, and section H marks it optional. Ask the closing attorney what the owner’s policy would cover on your house before you decide.
How Do You Compare Two Loan Estimates?
Putting estimates side by side is a big part of what a broker does when shopping lenders, and the comparison is fair only if the inputs match. Check that both estimates cover the same loan type, the same loan amount and the same term, and that the lenders wrote them within a day or two of each other. Pricing moves daily, so a Monday estimate can make one lender look cheaper than a Friday estimate for no reason but the calendar.
Start with section A. It’s each lender’s own price, so compare the totals rather than the item names, since lenders itemize differently. Then look at section B, which should be close from one lender to the next. A big gap there is worth a question. Check points and lender credits too, because a lower rate with points and a higher rate with credits are different trades. Ask both lenders for the same version.
Then turn to page 3. In 5 Years shows what you’d pay over the first 60 payments, loan costs included, and how much principal you’d have paid off. The APR folds the fees into a rate. On two estimates for the same loan, the lower numbers on page 3 usually point to the better offer.
Leave sections F and G out of the comparison. They’re built from your tax bill, your insurance premium and your closing date, and the lender sets none of those. A lender whose escrow deposit looks $800 lower hasn’t saved you $800. Our loan comparison calculator runs two offers side by side, and our page on how mortgage brokers work with lenders explains how more than one lender prices the same file.
What Should You Ask Whoever Sent You the Estimate?
A good lender or broker can answer each of these in a sentence or two. Ask by email, so the answers are in writing next to the form.
- Is my rate locked, and until what date and time? If it isn’t, what changes on this form when you lock it?
- Can I see this estimate with and without points, and with and without lender credits?
- Did you price the section C services from your own provider list, and can I have that list?
- Did the property tax figure come from the house’s actual bill or from the price?
- What would make you send a revised estimate, and how would I hear about it?
- When do these costs expire, and what happens if I need more time?
GoldCoast is an independent mortgage broker with one office in Beverly. We pre-qualify you, then put the same loan in front of several wholesale lenders and read their estimates the way this page does. The lender underwrites the loan and sets its price. Before any of that, the Massachusetts closing costs calculator gives you a rough cash figure to plan around.
Common Questions About Loan Estimates
Is a Loan Estimate the Same as a Loan Approval?
No. The lender hasn’t approved or denied your application when it sends one. The estimate shows the loan the lender expects to offer if you go ahead.
What If My Closing Costs Are Higher than the Estimate?
If a fee in the can’t-go-up group is higher, or the 10 percent group grows by more than 10 percent, the lender refunds the excess within 60 calendar days after closing. Taxes, insurance and prepaid interest can rise without a refund.
When Will I Get the Closing Disclosure?
You have to receive it at least three business days before closing. For that count, every day except Sundays and federal holidays is a business day. Once the lender sends the Closing Disclosure, it can’t send another Loan Estimate.
Why Is the Transfer Tax Line Blank on My Massachusetts Estimate?
Massachusetts puts the deeds excise on the seller, the person who signs the deed. The federal form leaves the line blank when the buyer isn’t paying a transfer tax.
Can I Get Loan Estimates from More than One Lender?
Yes. The CFPB suggests asking several lenders for estimates on the same kind of loan. Until you receive an estimate and say you want to proceed, a lender can charge you only for pulling your credit report.