How to compare Loan Estimates

The Loan Estimate is a standardized three-page disclosure every lender must issue within three business days of your application. Because the format is identical everywhere, it is the single best tool for comparing offers, once you know which boxes matter.

Page 1: the loan itself

• Loan amount, rate, and monthly principal and interest: the headline terms.
• Loan type and term: make sure you are comparing 30-year to 30-year, conventional to conventional.
• Rate lock: whether the quoted rate is locked and until when.

Page 2: where offers actually differ

• Section A, Origination Charges: the lender’s own fees, including points. This is the number lenders control completely and the first place to compare.
• Points in Section A: a lower rate with big points is not automatically better; note both.
• Lender credits: shown as a negative number that offsets costs.
• Sections B and C: third-party services; similar across lenders, but shoppable items are listed here.

Page 3: the comparison tools

• APR: the rate including most costs, useful for same-size, same-term comparisons.
• TIP (Total Interest Percentage): how much interest you would pay over the full term as a share of the loan.
• In 5 Years: total dollars paid in the first five years, a genuinely underrated comparison number.

The honest comparison method: same loan amount, same term, same rate-lock status, then compare rate, points or credits, Section A, and cash to close together. Or skip the homework and have a licensed team do it line by line for you.