A loan estimate looks like a done deal. It isn't. Some of the numbers on it can legally change by up to 10% before closing, and a few can change by any amount.
Shopping around for a mortgage is crucial, and it starts with the loan estimate, a three-page document detailing the interest rate, estimated costs and other loan terms.
87% of 2025 borrowers paid above the most competitive rate available to them simply because they didn't compare offers, according to Bankrate's Hidden Homeownership Tax research. The typical cost of not shopping: $3,343 a year, or $278 a month.
A mortgage loan estimate is a standardized, three-page document that a lender must send you within three business days of receiving your mortgage application. It lists your rate, monthly payment, closing costs and other terms — but none of these numbers are final. Think of it as a detailed price quote: close enough to compare lenders and build an accurate budget, but not enough to guarantee what you'll actually pay at closing.
When you compare loan estimates from more than one lender, you're more likely to uncover the lowest rate you actually qualify for. Freddie Mac found that borrowers who obtained two rate quotes during the high-rate months of October and November 2022, when average rates topped 7%, could have saved up to $600 a year. Borrowers who obtained at least four quotes could have saved more than $1,200 a year.
#estimate #compare #year
Shopping around for a mortgage is crucial, and it starts with the loan estimate, a three-page document detailing the interest rate, estimated costs and other loan terms.
87% of 2025 borrowers paid above the most competitive rate available to them simply because they didn't compare offers, according to Bankrate's Hidden Homeownership Tax research. The typical cost of not shopping: $3,343 a year, or $278 a month.
A mortgage loan estimate is a standardized, three-page document that a lender must send you within three business days of receiving your mortgage application. It lists your rate, monthly payment, closing costs and other terms — but none of these numbers are final. Think of it as a detailed price quote: close enough to compare lenders and build an accurate budget, but not enough to guarantee what you'll actually pay at closing.
When you compare loan estimates from more than one lender, you're more likely to uncover the lowest rate you actually qualify for. Freddie Mac found that borrowers who obtained two rate quotes during the high-rate months of October and November 2022, when average rates topped 7%, could have saved up to $600 a year. Borrowers who obtained at least four quotes could have saved more than $1,200 a year.
#estimate #compare #year
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