Loan Estimate Calculator

Generate your own TRID Loan Estimate. See your projected payment, APR, itemized closing costs by section, total cash to close, and the comparison metrics lenders are required to show — before you receive a real LE from a lender.

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$20%
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Estimated Loan Summary
$2,592/mo
$2,076 P&I + $517 estimated escrow (taxes + insurance)
Loan Amount
$320,000
Interest Rate / APR
6.750% / 6.869%
Est. Closing Costs
$12,021
Total Cash to Close
$92,021
Total Interest
$427,185
Total Payments
$747,185

Page 1 of the TRID Loan Estimate shows three boxes: Loan Terms, Projected Payments, and Costs at Closing. Here is how your numbers populate each box:

LOAN TERMS BOX
Loan Amount: $320,000
Interest Rate: 6.750%
Monthly P&I: $2,076
Loan Term: 30 years
Prepayment Penalty: No (most loans)
Balloon Payment: No (fixed term)
PROJECTED PAYMENTS BOX
Principal & Interest: $2,076
Estimated Escrow: $517
Estimated Total Monthly: $2,592
Property Tax (monthly): $400
Homeowner Insurance (monthly): $117
COSTS AT CLOSING BOX
Closing Costs: $12,021
Closing Costs as %: 3.8%
Cash to Close: $92,021
Down Payment: $80,000

When comparing Loan Estimates from multiple lenders, use these standardized metrics — not just the monthly payment — to find the true best deal:

Your APR
6.869%
The standardized comparison number — higher than rate due to fees
Your Rate
6.750%
Note rate — monthly payment is based on this
APR Premium
0.119%
The fee load — smaller gap = lower total fees
5-Year Cost
$136,552
All payments + closing costs in first 5 years
5-Year Principal Paid
$19,598
Equity built in first 5 years
Total Interest
$427,185
Total interest over full loan life
HOW TO COMPARE TWO LOAN ESTIMATES

1. APR first: The lender with the lower APR has lower total fees relative to the rate. This is the single best comparison number.

2. 5-Year Comparison: Page 3 of the Loan Estimate shows the "In 5 Years" box — total payments and principal paid. This is required by TRID law.

3. Cash to close: A lender may offer a lower rate but charge more upfront. The 5-year number shows which is better based on how long you plan to stay.

4. Origination vs rate tradeoff: Paying 1 point ($1/1% of loan) to buy down the rate by ~0.25% is worth it only if you keep the loan long enough to recoup the upfront cost.

How to Use This Loan Estimate Calculator

Enter your Home Price, Down Payment, Interest Rate, Loan Term, and Loan Type. Use "More Options" to customize the origination fee percentage, annual property tax, and insurance. The calculator generates an estimated Loan Estimate showing your projected monthly payment (P&I + escrow), APR, total closing costs, and total cash to close — in the same format as the official TRID Loan Estimate you receive from lenders.

This is a planning tool to help you understand what a Loan Estimate should look like before you receive one from a lender, and to help you compare offers across multiple lenders.

How APR is Calculated

APR = The rate that makes the present value of all payments equal to loan proceeds after fees

Loan Proceeds = Loan Amount - Financed Fees (Section A + B)

APR is always higher than the note rate because fees reduce what you actually receive

TIP (Total Interest Percentage) = Total Interest ÷ Loan Amount × 100

5-Year Cost = (Monthly Payment × 60) + Total Closing Costs

The APR standardizes the comparison across all lenders — a lender offering 6.5% with high fees may have a higher APR than a lender offering 6.625% with low fees. Always compare APR, not just the note rate.

Example: $400,000 Home — Estimated Loan Estimate

30-Year Conventional at 6.75% — $80,000 Down

Loan Amount$320,000
Interest Rate6.750%
Estimated APR~6.983% (including fees)
Monthly P&I$2,076
Monthly Escrow (est.)$517 (taxes + insurance)
Total Monthly Payment~$2,593
Total Closing Costs (est.)~$12,000
Total Cash to Close~$92,000
5-Year Total Cost~$167,600 (payments + closing costs)
Total Interest (30 yr)~$427,000

These are estimates based on typical fee structures. Actual lender fees vary. Use this to evaluate whether a real Loan Estimate you receive from a lender has fees that are reasonable or inflated.

Frequently Asked Questions

A Loan Estimate (LE) is a standardized 3-page disclosure required by federal law (TRID — TILA-RESPA Integrated Disclosure) that every mortgage lender must provide within 3 business days of receiving your loan application. It shows your loan terms, projected monthly payment, estimated closing costs, and total cash to close — in a uniform format that makes it easy to compare offers from multiple lenders. Lenders are legally bound to the costs shown on the LE within certain tolerance limits.
Section A (origination charges) and Section B (services you cannot shop, like appraisal) are subject to 0% tolerance — they cannot increase at all from LE to Closing Disclosure. Section C (services you can shop, like title insurance and settlement) can increase up to 10% in aggregate. Government fees (recording, transfer tax) can change if the actual government-published amounts differ. Prepaids and escrow have no tolerance limit because they depend on factors like the actual closing date.
The interest rate (note rate) is used to calculate your monthly payment. The APR (Annual Percentage Rate) accounts for the interest rate plus certain fees (origination, broker fees, mortgage insurance, certain closing costs) expressed as an annualized rate. APR is always higher than the note rate for fixed-rate loans. The wider the gap between rate and APR, the higher the fees — a large spread (more than 0.5%) suggests heavy lender fees. Use APR to compare apples-to-apples across lenders, not just the monthly payment.
Page 3 of the Loan Estimate shows the total amount you will have paid in the first 5 years (all payments plus closing costs) and how much of that went to principal. This number is required by TRID law because it gives you a realistic comparison based on how long most people actually keep a mortgage before refinancing or selling. A lender with higher closing costs might look attractive based on monthly payment alone, but the 5-year cost reveals the full picture. For a 30-year loan, most buyers sell or refinance within 7–10 years.
The Closing Disclosure (CD) is the final version of the Loan Estimate, issued at least 3 business days before your closing. It shows the actual, final numbers — including any changes from the LE. You should compare the CD to your Loan Estimate line by line to ensure Section A and B costs did not increase (they cannot) and Section C costs did not increase by more than 10% in aggregate. If you find discrepancies, contact your loan officer immediately — lenders must cure any tolerance violations within 3 calendar days of closing.

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