A standardized 3-page document a lender must provide within 3 business days of receiving a mortgage application, summarizing the loan terms and costs.
The Loan Estimate (LE) lists the loan amount, interest rate, monthly payment, projected payments over time, and itemized closing costs. It replaced the old Good Faith Estimate in 2015 under TRID rules.
Use the Loan Estimate to compare offers from different lenders side-by-side. Page 3 has a 'Comparisons' section that helps you evaluate APR, total payments over 5 years, and total interest percentage.
Lenders are limited in how much certain costs can change between the LE and the final Closing Disclosure — some have zero tolerance, others 10%.