How to Read a Loan Estimate in Florida: The Three Pages That Decide Your Cost
Knowing how to read a Loan Estimate Florida borrowers receive within three days of applying turns a confusing form into a comparison tool. Page one is the loan; page two is the money; page three is the comparison.
Educational content only. This article is for informational purposes and does not constitute financial, legal, or lending advice. Loan programs, rates, and eligibility requirements change frequently. Consult a licensed mortgage professional before making any borrowing decision. Mortgage Capital | NMLS# 1859012 | Licensed in Florida.
Knowing how to read a Loan Estimate Florida borrowers receive within three business days of applying turns a dense form into a comparison tool.
Page one is the loan, page two is the money, page three is the comparison. Our guide to closing costs in Florida covers what the numbers should look like.
What it is
A standardised three-page disclosure required on every mortgage application.
The CFPB's interactive Loan Estimate explains each field.
Every lender uses the same form.
That is what makes it comparable.
It is an estimate; the Closing Disclosure is the final.
Page one: loan terms
Loan amount, interest rate, monthly principal and interest.
Whether any of those can increase after closing.
Prepayment penalty and balloon payment: yes or no.
See our guide to prepayment penalties in Florida.
Read these five lines first.
Page one: projected payments
Principal and interest, mortgage insurance, and estimated escrow by year.
The escrow line is where Florida taxes and insurance appear.
See our guide to escrow accounts in Florida.
An estimate that uses the seller's tax bill understates year two.
See our guide to property tax estimates for new buyers in Florida.
Page one: costs at closing
Estimated closing costs and estimated cash to close.
The cash-to-close figure is what you wire.
Compare it across lenders at the same lock date.
It includes the down payment.
Page two explains where it comes from.
Page two: section A, origination charges
Points, application fees, underwriting fees: the lender's own charges.
See our guide to discount points in Florida.
This section cannot increase at closing without a valid reason.
The main place lenders differ.
Compare section A totals directly.
Page two: sections B and C, services
B: services you cannot shop for, such as the appraisal and credit report.
C: services you can shop for, such as title and survey.
See our guide to title insurance in Florida.
Section C estimates can vary if you choose your own provider.
Florida title is often chosen by the seller by custom; ask.
Page two: section E, taxes and government fees
Recording fees and transfer taxes.
Florida doc stamps on the deed and note and intangible tax on the mortgage appear here.
See our guide to Florida doc stamps and intangible tax.
A large line in Florida compared to most states.
The seller pays deed stamps by custom in most counties.
Page two: sections F and G, prepaids and escrow
F: prepaid interest, the first year's insurance premium, and any prepaid taxes.
G: the initial escrow deposit for taxes and insurance.
See our guide to Florida homeowners insurance cost.
These are not lender fees; they are your own costs paid early.
They vary with the closing date.
Page two: section J and lender credits
Total closing costs, then lender credits as a negative number.
See our guide to lender credits in Florida.
A credit means a higher rate on page one.
Compare the credit and the rate together.
One without the other is meaningless.
Page two: calculating cash to close
Closing costs, down payment, deposit already paid, seller credits, and adjustments.
See our guide to seller concessions in Florida.
The bottom line matches page one.
Check that the seller credit from the contract appears.
A missing credit is a common error.
Page three: comparisons
In five years: total paid and principal paid off.
APR and total interest percentage.
See our guide to rate versus APR in Florida.
The five-year figure is the best comparison for a short hold.
APR is better for a long one.
Page three: other considerations
Appraisal, assumption, homeowners insurance, late payment, refinance, servicing.
See our guide to assumable mortgages in Florida.
The servicing line says whether the lender intends to transfer the loan.
See our guide to mortgage servicers versus lenders in Florida.
Small print worth reading.
What can change
Section A and lender credits: not without a changed circumstance.
Sections B and E: up to 10 percent in total.
Sections C, F and G: can change if you choose providers or the closing date moves.
A revised Loan Estimate must be issued for valid changes.
The Closing Disclosure shows the final figures.
Comparing two estimates
Same loan amount, same lock date, same programme.
See our guide to mortgage brokers versus banks in Florida.
Compare page one rate and section A together.
Ignore differences in F and G; they are your costs, not the lender's.
Section C differences may reflect provider choice, not lender pricing.
The Florida-specific lines
Doc stamps and intangible tax in E.
Flood insurance in F and G if required.
See our guide to flood insurance in Florida.
Wind mitigation credits reduce the insurance line.
Condo dues appear in the projected payment if escrowed, which is rare.
Where to start
Get two or three Loan Estimates on the same day and lay them side by side.
Compare page one and section A first, then the five-year cost.
Then start a conversation and we will walk through every line with you.