LOAN ESTIMATE — TRAINING EXAMPLEEducational facsimile — not an official disclosure
Purchase Price
$300,000.00
PAGE 1 — TERMS, PAYMENT & CASH
Loan Amount$294,566.25$289,500 base + $5,066.25 training UFMIP
Interest Rate6.250% TRAINING EXAMPLENot a quoted rate.
Monthly Principal & Interest$1,813.82Illustrative only.
Loan Term30 years
Projected Payment
| Principal & Interest | $1,813.82 |
| Estimated property taxes | $250.00 |
| Estimated homeowners insurance | $140.00 |
| Illustrative FHA monthly MIP | $132.55 |
| Illustrative Total Monthly Payment | $2,336.37 |
LO teaching point: Page 1 is where the borrower sees loan terms, projected payment and estimated cash to close. Explain P&I versus the full housing payment.
PAGE 2 — LOAN COSTS & OTHER COSTS
Loan Costs
| Origination charges | $1,250.00 |
| Appraisal example | $650.00 |
| Credit report | $75.00 |
| Title / shoppable example | $1,450.00 |
Other Costs
| Taxes / government fees | $250.00 |
| Prepaids | $1,250.00 |
| Initial escrow funding | $1,900.00 |
| Other | $300.00 |
LO teaching point: Explain lender/origination costs, shoppable services, prepaids and escrows. Prepaids/escrows are not the same as lender fees.
PAGE 3 — COMPARISONS & CASH TO CLOSE
Illustrative Costs$7,125.00
Seller Credit$9,000.00Cannot simply replace required borrower investment.
Earnest Money Credit$2,000.00
Illustrative Cash to Close$6,625.00$10,500 down + $7,125 costs − $9,000 seller credit − $2,000 earnest money.
APR teaching point: APR is a regulatory cost-of-credit measure incorporating specified finance charges. In a live file, use the lender's disclosure system rather than hand-creating APR.
Training only: Rate, taxes, insurance, MIP and fees are illustrative. Verify current figures in the LOS, agency guide and lender system.