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Is my Loan Estimate good?
Three checks on the rate, the points and the lender's fees, against this week's market averageA Loan Estimate is the three-page form a lender gives you after you apply for a mortgage. Three things on it decide whether the deal is good: the interest rate compared with today's market, the points you pay (or the credit you get) for that rate, and what the lender charges for its own work, listed in Section A on page 2. This checker reads all three in about a minute.
Check your Loan Estimate
You need page 1 (the loan amount and the rate) and page 2 (Section A). Every number stays on your device.
Illustrative estimates only. Every dollar figure here is an estimate from the numbers you typed and a published weekly market average. The ranges are rough rules of thumb, not standards. Nothing here is a loan offer, an approval, a commitment to lend or a Loan Estimate. Actual rates, fees and eligibility vary by lender and borrower, and comparemyloan is not a lender.
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Send us your Loan Estimate and we read every page, not just three numbers. Free, no credit pull, nobody calls you. Your details go to a lender only if you say yes to a real offer.
Send it to usHow we read it
Three checks, each a rough rule of thumb. They are meant to tell you what to ask about, not to replace reading the whole form.
- 1. The rate against the market. We compare your rate with this week's national average for the same loan type, published by Freddie Mac every Thursday. Within about an eighth of a point (0.125%) is about the market. An eighth of a point (0.125%) or more above it is worth asking about, and three-eighths (0.375%) or more is well above. We also show what the gap costs each month on your loan amount.
- 2. The points. One point is one percent of the loan amount, paid up front for a lower rate. The rule of thumb is that one point buys about a quarter point off the rate. If you pay points and your rate is still at or above the market average, the points are not buying much. We also show how many months the lower payment takes to earn the points back.
- 3. The lender's own fees. Section A on page 2 is what the lender charges for its own work. Take the points out and look at the rest. As an illustrative range, that usually comes to under one percent of the loan, or under about $1,500 on a smaller loan. Up to one and a half percent (or $2,500) is on the high side. Above that is high.
points in dollars = loan amount × points % ÷ 100
lender's own fees = Section A total − points
Where to find these numbers on your Loan Estimate
- Loan amount and interest rate: page 1, the "Loan Terms" table at the top.
- Points: page 2, Section A, the first line, "% of Loan Amount (Points)".
- Section A total: page 2, the figure beside "A. Origination Charges".
- Lender credits: page 2, Section J, "Lender Credits". A credit is the lender paying you to take a higher rate.
- APR: page 3. It folds some fees into the rate. Useful for a side-by-side, but this checker uses the plain interest rate.
Questions people ask
What is a Loan Estimate?
The three-page form a lender must give you within three business days of your mortgage application. Every lender uses the same form, so two Loan Estimates line up side by side. Page 1 shows the rate and the monthly payment. Page 2 lists every fee. Nothing on it is final until you tell the lender to go ahead.
Is my mortgage rate good?
Compare it with this week's national average for the same loan type. Freddie Mac publishes that average every Thursday, and the checker above loads it for you. A rate within about an eighth of a point of the average is about the market. A rate an eighth of a point or more above it is worth asking about, and three-eighths or more is well above it. At $380,000, a quarter point is roughly $60 a month. Always check the points too: a low rate bought with points is not the same as a low rate.
What are points, and should I pay them?
Points are money you pay up front to get a lower rate. One point is one percent of the loan amount. As a rough rule of thumb, one point buys about a quarter point off the rate. Points can make sense if you will keep the loan long enough to earn them back through the lower payment. They show on page 2 as the first line of Section A.
What is Section A, and what is normal?
Section A, Origination Charges, is the top of page 2. It lists what the lender itself charges: points, plus fees with names like application, underwriting or processing. Take the points out and the rest is the lender's own fee. As an illustrative range, that usually comes to under one percent of the loan, or under about $1,500 on a smaller loan. More than that is worth a question.
Can I get a Loan Estimate from more than one lender?
Yes. You can ask as many lenders as you like, and credit scoring treats every mortgage check in a 45-day window as one check. Asking for a Loan Estimate does not commit you to anything. The lender cannot charge you anything but a credit report fee until you say go ahead. More on rate shopping and your credit →
Does this checker send my numbers anywhere?
No. The math runs in your browser. The only thing the page loads from our server is this week's market average rate. Your loan amount, rate and fees never leave your device unless you choose to send your Loan Estimate to us separately.