Loan terms
Review the loan amount, interest rate, monthly principal and interest, prepayment penalty, and balloon-payment disclosures.
Loan Estimate
Do not compare mortgages using the interest rate alone.
The Loan Estimate organizes the proposed loan terms, projected payments, closing costs, cash-to-close estimate, and comparison information needed to evaluate the financing.
Projected payments
This section can include principal and interest, mortgage insurance, estimated escrow, taxes, insurance, and total estimated payment.
Costs at closing
Review both estimated closing costs and estimated cash to close.
Loan costs
Origination charges, services you cannot shop for, and services you can shop for appear in separate categories.
Other costs
Taxes, prepaid expenses, initial escrow deposits, and other transaction items appear outside lender-controlled loan costs.
Comparisons
APR, total interest percentage, and other comparison figures can help evaluate offers, but should be understood in context.