What Is a Loan Estimate?

Short answer

The Loan Estimate (LE) is the standardized 3-page disclosure that shows your loan amount, rate, monthly payment, closing costs and cash to close. Federal rules require the lender to deliver it within 3 business days of receiving your application (CFPB, as of October 2026). Every lender uses the same form, so it is the tool for comparing offers side by side.

Definition

A Loan Estimate is the early disclosure of loan terms and costs required under TRID. It is an estimate, not a commitment, but certain fees on it cannot increase at closing without a valid reason.

Worked example

Page 2 of an LE for a $480,000 purchase with a $432,000 loan might show: Section A, origination charges $1,500; Section B, services you cannot shop for (appraisal $650, credit report $75); Section C, services you can shop for (title and settlement $3,200); Section E, taxes and government fees, including Florida doc stamps on the note $432,000 x 0.0035 = $1,512 and intangible tax $432,000 x 0.002 = $864; Section F and G, prepaids and escrow deposits. Total closing costs might be about $12,000. Cash to close = down payment $48,000 + closing costs $12,000 - deposit already paid $10,000 = $50,000.

What is on each page

• Page 1: loan terms (amount, rate, monthly P&I, prepayment penalty, balloon), projected payments including estimated escrow, and costs at closing.
• Page 2: itemized closing costs in Sections A through H, then the cash-to-close calculation.
• Page 3: comparisons (5-year cost, APR, total interest percentage) and other considerations like appraisal and servicing.

How to compare two Loan Estimates

Line up Section A (the lender's own fees), the rate and points, and the APR. Ignore differences in Sections E through G, which are the same taxes and prepaids regardless of lender; they only differ because one lender estimated them differently. Make sure both LEs are from the same day since rates vary daily.

In South Florida

On a Florida LE, Section E (taxes and government fees) is much larger than in most states because of doc stamps on the note at $0.35 per $100 and the intangible tax at 2 mills, both charged on the loan amount (Florida Statutes 201.08 and 199.133, as of October 2026). Check the estimated taxes and insurance on page 1 too: a careful Miami loan officer estimates property taxes on your purchase price, not the seller's capped bill, and includes windstorm and flood where needed.