Definition: A standardized three-page disclosure of estimated mortgage terms, projected payments, and closing costs for covered transactions under the federal mortgage-disclosure rules.
Example
A borrower compares Loan Estimates for the same loan type and amount from two lenders.
Keep the distinction clear
A Loan Estimate is not a final Closing Disclosure or a promise of loan approval. Applicable rules govern delivery and when revised estimates are permitted.
Related terms
Annual Percentage Rate (APR) · Loan Origination Fee · Discount Points
Keep studying
References: CFPB: Loan Estimate explainer
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