To compare a Loan Estimate with a Closing Disclosure, put the two forms side by side and check each section against its twin: the loan terms on page 1, the lettered cost sections A through J, and the Calculating Cash to Close table. Then sort every difference into the three federal groups: charges that may not rise, charges that may rise by 10% in total, and charges with no limit. An increase over those limits without a valid reason must be refunded to you.
This is general education about federal disclosure rules, not legal or financial advice. The two forms apply to most closed-end consumer mortgages secured by real property or a co-op unit; reverse mortgages and home equity lines of credit use other disclosures. State law can add requirements.
Key takeaways
- Lender fees, fees for services you could not shop for and transfer taxes may not rise without a valid reason; recording fees and fees of providers from the lender's list may rise 10% in total; prepaid interest, insurance and escrow have no limit.
- The Closing Disclosure must reach you three business days before closing; a new wait starts only if the APR becomes inaccurate, the loan product changes or a prepayment penalty is added.
- An excess over the limits must be refunded within 60 days after closing.
Matching each line across the forms
The Loan Estimate, covered in the CFPB's Loan Estimate explainer, is a three-page form the lender must deliver or mail within three business days after your application. The Closing Disclosure, described in the CFPB's Closing Disclosure explainer, is a five-page statement of the final terms. On the CFPB's forms and samples page, the 2014 sample Loan Estimate and sample Closing Disclosure show how the sections line up.
| What to check | Loan Estimate | Closing Disclosure |
|---|---|---|
| Loan amount, rate, monthly payment, prepayment penalty, balloon payment | Page 1, "Loan Terms" | Page 1, "Loan Terms" |
| Lender fees, points (A. Origination Charges) | Page 2 | Page 2 |
| B. Services you cannot shop for | Page 2, "Services You Cannot Shop For" | Page 2, "Services Borrower Did Not Shop For" |
| C. Services you can shop for | Page 2, "Services You Can Shop For" | Page 2, "Services Borrower Did Shop For" |
| D. Total loan costs (A + B + C) | Page 2 | Page 2 |
| E to H. Taxes and government fees, prepaids, initial escrow, other; I. Total other costs | Page 2 | Page 2 |
| J. Total closing costs (D + I) and lender credits | Page 2 | Page 2 |
| Cash to close | Page 2, "Calculating Cash to Close" | Page 3, "Calculating Cash to Close" with Loan Estimate, Final and "Did this change?" columns |
| Seller credit, deposits, adjustments (K and L) | Only as summary lines in the cash-to-close table | Page 3, full detail |
| APR and total interest percentage | Page 3, "Comparisons" | Page 5 |
Three quirks matter. First, only the Closing Disclosure's borrower-paid columns (at and before closing) compare to the Loan Estimate, not the seller-paid or paid-by-others columns. Second, a fee can change sections: under 12 CFR 1026.38(f)(2), a service listed in section C of the Loan Estimate moves to section B of the Closing Disclosure if you picked a provider from the lender's written list. Match fees by name, not by section letter. Third, the cash-to-close table can move in a direction that hides a cost increase. In the CFPB's sample forms, Total Closing Costs rise from $8,054 to $9,712.10, yet Cash to Close falls from $16,054 to $14,147.26, because $29.80 was paid before closing, a $2,500 seller credit was added and $1,035.04 of adjustments and credits appeared. Compare section J first, then cash to close.
What may change, and by how much
The rules sit in Regulation Z, 12 CFR 1026.19(e)(3): an estimate is "in good faith" if the final charge stays within its group's limit. The CFPB's plain-language version is its answer on whether final mortgage costs can increase.
| Group | Typical items | Limit without a valid reason |
|---|---|---|
| Zero tolerance | Fees paid to the lender, broker or their affiliates; fees for required services you were not allowed to shop for (Loan Estimate section B); transfer taxes | No increase |
| 10% cumulative | Recording fees; required services you were allowed to shop for, when you chose a provider from the lender's written list or did not choose one, as long as the provider is not the lender or an affiliate | The total of the group may rise by up to 10% |
| No limit (best information available) | Prepaid interest; property insurance premiums; initial escrow deposits; required services you shopped for yourself with a provider not on the lender's list; third-party services the lender does not require; property taxes | None, but the estimate must have been based on the best information reasonably available when issued |
Two conditions are easy to miss: a listed provider that is a lender affiliate falls under zero tolerance, and the 10% test applies to the group total, so one fee can rise well past 10% while the group stays under the cap.
Worked example of the 10% test
Illustrative example with round numbers, not real fees:
| Group | Item | Loan Estimate | Closing Disclosure |
|---|---|---|---|
| Zero tolerance | Origination (lender) fees | $2,000 | $2,000 |
| Zero tolerance | Appraisal (section B) | $600 | $650 |
| Zero tolerance | Credit report | $50 | $50 |
| Zero tolerance | Transfer tax | $1,000 | $1,000 |
| 10% group | Recording fees | $200 | $240 |
| 10% group | Title services (lender's list) | $1,800 | $2,050 |
| 10% group | Survey (lender's list) | $400 | $400 |
| No limit | Homeowner's insurance premium | $1,200 | $1,500 |
10% group on the Loan Estimate = 200 + 1,800 + 400 = $2,400
Cap = 2,400 x 1.10 = $2,640
10% group on the Closing Disclosure = 240 + 2,050 + 400 = $2,690
Excess over the cap = 2,690 - 2,640 = $50
Zero-tolerance excess = appraisal 650 - 600 = $50
Refund due = 50 + 50 = $100
The 10% group rose $290, about 12.1%, so it is $50 over the cap; the title fee's own 13.9% rise does not matter, because only the group total is tested. The appraisal is a separate $50 excess, since zero tolerance allows nothing. The $300 insurance increase is in the no-limit group. Costs rose $640 in total, but only $100 is refundable. On a real Closing Disclosure, the title and survey fees would sit in section B, because their providers came from the lender's list.
Revised Loan Estimates
Under 1026.19(e)(3)(iv), a lender may measure the limits against a revised estimate only if the revision comes from one of these reasons:
- A changed circumstance: an extraordinary event outside anyone's control or another unexpected event specific to you or the transaction, information the lender relied on that proved inaccurate or changed, or new information it did not rely on before. For the 10% group, it counts only if it pushes the group total up by more than 10%.
- A changed circumstance affecting eligibility: you no longer qualify for a charge because your creditworthiness or the property's value changed.
- A request from you that changes the credit terms or settlement and raises a charge.
- An unlocked rate: points or lender credits change because the rate was not locked when the Loan Estimate was issued. The revised Loan Estimate is due within three business days of the lock.
- Expiration: you indicated you wanted to proceed more than 10 business days (or the lender's longer period) after the Loan Estimate was provided.
- Delayed settlement on new construction expected more than 60 days out, if the original Loan Estimate said so.
The revised Loan Estimate is due within three business days of the lender getting information that establishes the reason. Under 1026.19(e)(4)(ii), you must receive it no later than four business days before closing, and the lender cannot issue a revised Loan Estimate on or after the day it provides the Closing Disclosure; from then on, a revised estimate goes into the Closing Disclosure or a corrected one. Under the official commentary, a revision resets the baseline only to the extent the reason actually raised each charge. CFPB examples include a different loan type or down payment, an appraisal above or below expectations, or income the lender could not document. Keep every version, so you can see which estimate each charge is measured against.
The three-day wait and resets
The lender must make sure you receive the Closing Disclosure no later than three business days before closing ("consummation") under 1026.19(f)(1)(ii). For this wait, Regulation Z counts business days as every calendar day except Sundays and federal legal public holidays, so Saturdays count. A Closing Disclosure handed to you on a Monday allows closing on Thursday. If it is mailed or sent electronically, you are treated as receiving it three business days after it was sent, unless the lender has evidence you got it sooner.
Under 1026.19(f)(2), most later changes need no new wait: the lender gives you corrected disclosures at or before closing, and you may inspect the Closing Disclosure during the business day before closing. Only three changes restart the full three-business-day wait:
- The APR becomes inaccurate. Under 1026.22 that generally means more than one-eighth of a percentage point off the correct APR (one-quarter point for irregular loans, such as those with multiple advances). A falling APR does not always count: an APR overstated because the finance charge was overstated, for example after a rate drop, is treated as accurate, as the CFPB explains in its TRID FAQs. You still get a corrected form, just without a new wait.
- The loan product changes, for example from fixed rate to adjustable rate.
- A prepayment penalty is added.
Refund when a limit is exceeded
If what you paid exceeds the zero-tolerance or 10% limits with no valid reason, the lender must refund the excess and send corrected disclosures showing it no later than 60 days after closing (1026.19(f)(2)(v)). The form itself flags the problem: on page 3, the "Did this change?" entry for Total Closing Costs must say that the increase exceeds legal limits by the dollar amount of the excess, under 1026.38(i)(1)(iii) (1026.38(e) on the no-seller alternative table). In the example above, that would be $100. A refund given on the form appears in the Lender Credits line on page 2 with a statement of the amount (1026.38(h)(3)), or as a principal reduction.
Separately, non-numeric clerical errors can be corrected up to 60 days after closing, and an event in the 30 days after closing that changes what you paid requires a corrected form within 30 days of the lender learning of it.
Frequently asked questions
Can the lender change my interest rate after the Loan Estimate?
An unlocked rate can change at any time; page 1 of the Loan Estimate shows whether yours is locked and until when. According to the CFPB, a locked rate can still change if your application information changes or you do not close within the lock period.
Can I waive the three-day wait?
Only for a bona fide personal financial emergency. After receiving the Closing Disclosure, you give the lender a dated written statement that describes the emergency, specifically waives or modifies the wait, and is signed by every consumer primarily liable on the loan. Printed forms for this purpose are prohibited.
What if a number changes at the closing table?
A higher fee or a different seller credit does not restart the clock: the lender gives you a corrected form at or before closing, and closing can go ahead that day. Any excess over the limits is still owed back. If one of the three reset triggers occurs, closing waits three business days after you receive the corrected form, unless the emergency waiver applies.
What happens if I wait longer than 10 business days to say I want the loan?
The lender may issue a revised Loan Estimate and measure the limits against it. The window is 10 business days after the Loan Estimate is provided unless the lender allows longer; page 1 shows the date and time its estimated closing costs expire.
Where can I report an overcharge the lender will not fix?
Start by asking the lender in writing to explain the difference, naming the fee and the section of each form. If that fails, you can file a complaint with the CFPB through its complaint form, which covers mortgages.
Your pre-closing checklist
- Collect every Loan Estimate and the Closing Disclosure; note the date you received the Closing Disclosure.
- Compare page 1: loan amount, rate, product, prepayment penalty, monthly payment. A new product or an added penalty means a new three-business-day wait.
- List section A, the Loan Estimate's section B fees and the transfer tax line from both forms. Any increase there needs a stated valid reason or a refund.
- Add the recording fees and the fees for shoppable services where you used a provider from the lender's list or chose none, on each form (on the Closing Disclosure, lender's-list fees appear in section B), multiply the Loan Estimate total by 1.10 and compare. Check that no provider is a lender affiliate.
- Ask the lender to explain any large jump in no-limit items (prepaid interest, insurance, escrow).
- Read the "Did this change?" column on page 3; ask in writing about any "exceeds legal limits" statement or unfamiliar line.
- If a refund is owed after closing, note the 60-day deadline and ask for the corrected Closing Disclosure.
Sources
- 12 CFR 1026.19, Certain mortgage and variable-rate transactions (eCFR)
- 12 CFR 1026.2, Definitions and rules of construction (eCFR)
- 12 CFR 1026.22, Determination of annual percentage rate (eCFR)
- 12 CFR 1026.38, Content of disclosures for certain mortgage transactions: Closing Disclosure (eCFR)
- Can my final mortgage costs increase from what was on my Loan Estimate? (CFPB)
- Closing Disclosure explainer (CFPB)
- Loan Estimate explainer (CFPB)
- Loan Estimate and Closing Disclosure forms and samples (CFPB)
- TILA-RESPA Integrated Disclosure FAQs (CFPB)
