How to read a Loan Estimate, section by section
What sections A through J mean, which costs you can negotiate, and what borrowers actually paid in 2025.
Updated October 24, 2026
Within three business days of a mortgage application, the lender must give you a three-page Loan Estimate — the standard form created by the CFPB's TILA-RESPA rule. Because every lender uses the same form, it is the best tool for comparing offers.
Page 1: the loan and your payment
Loan terms (amount, rate, whether the payment can rise, any prepayment penalty or balloon), projected payments including mortgage insurance and escrow, and the estimated cash to close.
Page 2: closing cost details
- A. Origination charges — what the lender charges to make the loan: points, application, underwriting and origination fees. This is the section most worth negotiating.
- B. Services you cannot shop for — appraisal, credit report, flood certification and similar services the lender selects. FHA's upfront mortgage insurance premium and the VA funding fee also appear here.
- C. Services you can shop for — typically title services and the survey. The lender must give you a list of providers, but you can choose your own.
- D. Total loan costs = A + B + C.
- E–H. Other costs — recording fees and transfer taxes, prepaid interest and homeowner's insurance, the initial escrow deposit, and other items such as an owner's title policy. These depend mostly on the home and the location, not the lender.
- J. Total closing costs = D + I (E–H) minus lender credits.
What borrowers actually paid in 2025
Lenders report section A and section D from the final Closing Disclosure to HMDA. For 2025 home-purchase loans:
| Measure | Middle half (25th–75th percentile) | Median |
|---|---|---|
| Total loan costs (D), conventional | $3,960 – $8,200 | $5,570 |
| Total loan costs (D), FHA | $8,680 – $15,020 | $11,310 |
| Total loan costs (D), VA | $3,210 – $11,380 | $6,490 |
| Origination charges (A), all loans | $1,150 – $4,380 | $1,860 |
FHA's higher section D reflects the 1.75% upfront mortgage insurance premium, which is listed in section B even when it is financed into the loan.
Use the Loan Estimate checker to see where your own section A and D fall among similar 2025 loans in your state and county.
Page 3: comparisons
"In 5 years" shows total payments and principal paid off; the APR spreads upfront costs over the loan term; the total interest percentage shows lifetime interest as a share of the loan. Compare these across Loan Estimates for the same loan amount and term.
Data: FFIEC/CFPB HMDA 2025 public loan/application register; FHFA and HUD 2026 loan limits. Home-purchase figures cover owner-occupied single-family (1–4 unit) site-built homes, first-lien closed-end loans. Methodology