According to the Consumer Financial Protection Bureau (CFPB), a mortgage LE is a document that’s usually about three pages in length. Roughly 72 hours after a buyer selects a home to mortgage, that borrower is given an LE, which includes all the essential elements that are important for them to know about their loan.
Most notably, an LE provides details on the estimated cost borrowers can expect to pay should they decide to move forward with the loan. This includes the loan amount, the interest rate, APR, closing costs and a ballpark figure of their monthly mortgage payment. In addition, an LE frequently contains particulars on certain fees or penalties incurred if borrowers miss their payments or pay off their loans in a timeline contrary to what was originally agreed upon.
In short, LEs contain both necessary information as well as other details that the lender deems noteworthy to mention.