A standardized 3-page form the lender must provide within 3 days of receiving your loan application, showing estimated loan terms and closing costs.
Full Definition
The Loan Estimate (LE) replaced the GFE (Good Faith Estimate) in 2015. Within 3 business days of receiving a complete loan application, the lender must issue an LE showing the loan amount, interest rate, APR, monthly payment, projected total payments over the loan life, and an itemized estimate of closing costs. The LE allows consumers to shop and compare loan offers from multiple lenders on a standardized form. Certain costs shown on the LE cannot increase at closing (origination charges, for example), while others can increase by up to 10% (title insurance, for instance). Compare the LE to the Closing Disclosure before signing.
Related Terms
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