Which items are subject to change on the Loan Estimate?

Which items are subject to change on the Loan Estimate?

• A. Escrow deposits; daily interest; homeowners insurance; third-party charges where the lender allows borrowers to shop
• B. Origination charges; title services; recording fees
• C. Loan amount; interest rate; term
• D. All fees are fixed

Answer: (A)

On the Loan Estimate, some costs are not finalized and can change before closing. Escrow deposits can shift as the property tax bill and insurance premium become known, and the amount set aside for the escrow may be adjusted. Daily interest depends on the actual rate in effect at closing and the exact closing date, so it can change from the estimate. Homeowners insurance can also differ from the initial estimate once a binding policy is chosen and the premium is known. Finally, third‑party charges where the lender allows borrowers to shop can vary because the borrower may select different providers with different fees. The other items, like the loan amount, interest rate, and term, are tied to the chosen loan and rate lock and aren’t expected to change on the LE unless a revised disclosure is issued due to a changed circumstance.

On the Loan Estimate, some costs are not finalized and can change before closing. Escrow deposits can shift as the property tax bill and insurance premium become known, and the amount set aside for the escrow may be adjusted. Daily interest depends on the actual rate in effect at closing and the exact closing date, so it can change from the estimate. Homeowners insurance can also differ from the initial estimate once a binding policy is chosen and the premium is known. Finally, third‑party charges where the lender allows borrowers to shop can vary because the borrower may select different providers with different fees. The other items, like the loan amount, interest rate, and term, are tied to the chosen loan and rate lock and aren’t expected to change on the LE unless a revised disclosure is issued due to a changed circumstance.