How to compare Loan Estimates, line by line

Make the comparison fair

Put the estimates next to each other and confirm that they describe the same decision. A quote for a different down payment, loan amount, or term can have a different payment for reasons unrelated to lender pricing. Note the issue date and whether the interest rate is locked.

Create a short comparison sheet with a column for each lender. Record the loan amount, rate, APR, principal-and-interest payment, mortgage insurance, and estimated total monthly payment. Leave a space for questions rather than quietly filling gaps with assumptions.

Understand where the cash goes

Page two separates loan costs from other costs. Pay particular attention to origination charges, services, and lender credits. Taxes, insurance, and escrow deposits also affect the amount you need, but differences in estimates do not necessarily mean a lender has a cheaper loan.

Ask each lender to explain any points or credits. A lender credit can reduce your upfront cash while changing the rate. A low-rate offer with substantial points may be a poor fit if you expect to sell or refinance before recovering the extra cost.

Compare over your own timeline

The comparison section gives another way to consider borrowing costs. But you also need a horizon that matches your plans. If you expect to keep the home for three years, calculate the costs and balance at that point rather than focusing only on a full 30-year schedule.

Write down the answers you receive and ask for an updated estimate when terms change. The exercise is not simply to select the smallest number in every row. It is to understand the package you are accepting, including the cash needed and the payment you will carry.

Your next-step checklist

• Confirm matching loan assumptions.
• Mark points, lender credits, and lender-controlled fees.
• Compare your expected cash to close.
• Ask for clarification in writing.