How to compare loan estimates and catch what lenders hope you won’t notice

A mortgage loan estimate, a three-page document, outlines key details such as the interest rate, monthly payment, and closing costs. However, these numbers are not final and can legally fluctuate by up to 10% before closing. Many borrowers, around 87% in 2025, opted for higher rates than the most competitive ones available to them, resulting in additional annual costs of $3,343 or monthly payments of $278.

Comparing loan estimates from multiple lenders helps uncover the lowest rate you qualify for, with the potential to save up to $1,200 a year. The loan estimate is a proposal, not a commitment, and does not lock in the interest rate or guarantee any terms until final closing documents are signed. The key details include the loan term, purpose, product, loan type, rate lock (if applicable), and any adjustable rate or prepayment penalties.

Once you've compared offers, you must express your intent to proceed within 10 business days, or the lender can close your application.