Loan Estimate Comparison Tool: Is Yours a Good Deal?
Upload the Loan Estimate your lender emailed you. In seconds you’ll see what the lender really charges, which fees to question, and whether you could do better. If I can beat it, I’ll show you how. If it’s a strong offer, I’ll tell you to take it.
- Separate what the lender charges from costs that are the same with any lender
- Catch an unlocked rate, points, prepayment penalties and junk fees
- Compare two offers box by box, on the same loan
Your PDF never leaves your device. It’s read right here in your browser. We only read the numbers in the boxes and the lender’s name, never your name or address. Nothing is sent unless you choose to send it to Alex.
Drop the PDF here, or tap to choose
The 3-page PDF your lender emailed
Drop the second PDF
Another lender, same loan
Only have a paper copy or a photo? Call or text Alex at (847) 899-6882 and go through it together.
How to compare Loan Estimates
To compare Loan Estimates, first make sure each one quotes the same loan: same amount, term, product and loan type. Then compare what each lender charges: the interest rate, Section A (origination charges, including points), Section B and lender credits. Costs in Sections C and E through H are mostly estimates that would be about the same with any lender, so they shouldn’t decide which lender you choose.
- Make sure it’s the same loan. On page 1, check the loan amount, loan term, product (fixed or adjustable) and loan type (conventional, FHA, VA). If any of these differ, you’re comparing two different loans, not two prices.
- Compare the lender’s price. Look at the interest rate, Section A on page 2 and lender credits (near Section J). A lower rate with $4,000 in points is not cheaper than a slightly higher rate with no points unless you keep the loan long enough.
- Check what the lender chose for you. Section B lists services the lender picks, like the appraisal and credit report. Ask about any fee here that looks like a lender charge with a third-party name, such as a “third party processing fee.”
- Set the estimates aside, then use page 3 as the tie-breaker. Prepaids, escrow and taxes depend on your closing date and property, not the lender. When the loans match, the “In 5 Years” cost and the APR on page 3 are the cleanest single numbers to compare.
Before you decide, check two dates on page 1: whether the rate is locked (and until when), and when the estimated closing costs expire.
What this Loan Estimate comparison tool does
The MacLagan Home Loans Loan Estimate Comparison Tool is free and works with a Loan Estimate from any lender in any state. You upload the PDF your lender emailed, and the tool reads every box in your browser. The file is never uploaded to a server. It then shows what the lender charges, which costs are only estimates, any red flags, and questions to ask before you sign. You can also compare two Loan Estimates side by side.
| Feature | This tool | Typical comparison calculator | CFPB guide |
|---|---|---|---|
| Reads your Loan Estimate PDF automatically | Yes | No, you type every number | No |
| Your PDF stays on your device | Yes | Nothing to upload | Nothing to upload |
| Separates lender charges from estimates | Yes | Sometimes | Explains how |
| Flags unlocked rates, points, prepayment penalties and junk fees | Yes | Rarely | Explains what to look for |
| Compares two Loan Estimates box by box | Yes | Yes | No |
| Free review by a licensed mortgage broker | Optional | No | No |
What each box on a Loan Estimate means
Every lender uses the same three-page federal form, so the same box means the same thing on every Loan Estimate. Here’s what each section covers and who controls it.
| Where | Box | What it is | Who sets it | What to watch for |
|---|---|---|---|---|
| Page 1 | Loan Terms | Loan amount, interest rate, monthly principal and interest, prepayment penalty, balloon payment | Lender | Prepayment penalty and balloon payment should say NO unless you chose them |
| Page 1 | Rate Lock | Whether the rate is locked, and until when | Lender | Unlocked means the rate, points and credits can still change |
| Page 1 | Projected Payments | Payment with mortgage insurance and escrow, by year range | Lender + estimates | When mortgage insurance drops off; FHA insurance often lasts the life of the loan |
| Page 2 | A. Origination Charges | The lender’s and broker’s own fees, plus any discount points | Lender | Processing, underwriting and application fees; points shown as a % of the loan |
| Page 2 | B. Services You Cannot Shop For | Third-party services the lender picks: appraisal, credit report, flood certification | Lender | Fees that look like lender charges listed under a third-party name |
| Page 2 | C. Services You Can Shop For | Title and settlement services | You can shop | Which title company they assumed; you can choose your own |
| Page 2 | E. Taxes and Other Government Fees | Recording fees and transfer taxes | Government | Same with any lender; in Chicago, the buyer pays city transfer tax |
| Page 2 | F. Prepaids | Homeowner’s insurance premium and prepaid interest | Estimate | Prepaid interest depends on your closing date, not the lender |
| Page 2 | G. Initial Escrow Payment | The starting balance of your escrow account | Estimate | Months of taxes depend on tax due dates, so this varies between lenders |
| Page 2 | H. Other | Owner’s title policy, attorney fees, HOA fees and other costs | Not the lender | Whether the cost is actually yours to pay |
| Page 2 | J. Total Closing Costs and Lender Credits | All closing costs minus any lender credit | Lender (credits) | Credits lower your costs in exchange for a higher rate |
| Page 3 | Comparisons | “In 5 Years” cost, APR and Total Interest Percentage | Calculated | The best single numbers to compare once the loans match |
Why the lowest cash to close isn’t always the cheapest loan
Cash to close can differ by thousands of dollars between two lenders who charge exactly the same. The usual reasons:
- A different closing date. Prepaid interest in Section F covers the days from closing to month-end. One lender assuming a closing on the 28th instead of the 5th can lower cash to close by weeks of interest.
- Fewer months of escrow. Section G depends on when property taxes are due. A lender collecting 3 months instead of 8 looks cheaper but isn’t.
- A different title quote. Section C is an estimate, and you can shop for title yourself.
- Lender credits. A credit lowers closing costs today but comes with a higher rate for the life of the loan.
That’s why the tool above splits your costs into what the lender charges and what is only an estimate.
Are discount points worth it?
Points are worth it only if you keep the loan past the break-even point. A simple example on a $400,000, 30-year loan:
- 1 point costs $4,000 up front (1% of the loan).
- It lowers the rate from 7.25% to 7.00%, cutting the payment from $2,728.71 to $2,661.21: $67.50 a month.
- $4,000 ÷ $67.50 = about 59 months, or almost 5 years to break even.
If you might sell or refinance within 5 years, the points cost you money. Ask your lender for the same loan with zero points so you can see the difference. To test other rates and payments, use the mortgage calculator.
Comparing Loan Estimates in Illinois
Illinois Loan Estimates have a few local costs that confuse buyers. None of them are a reason to pick one lender over another.
- Transfer taxes (Section E). The Illinois state and Cook County transfer taxes are customarily paid by the seller. In Chicago, the buyer pays a city transfer tax of $3.75 per $500 of the price: $3,000 on a $400,000 home. Some lenders include the seller’s share in Section E too, so ask who is paying what.
- Attorney fees. Most Illinois buyers hire a real estate attorney. That fee may appear in Section H, or not at all, because it isn’t a lender charge.
- Owner’s title policy. In the Chicago area the seller usually pays for the owner’s title policy. If it shows in Section H as your cost, check your purchase contract.
- Suburban transfer taxes. Many suburbs, such as Evanston, Oak Park and Skokie, charge their own transfer tax, which the seller usually pays.
Loan Estimate vs. Closing Disclosure
The Loan Estimate comes within 3 business days of applying and estimates your terms and costs. The Closing Disclosure shows the final numbers, and you must receive it at least 3 business days before closing. Compare the two box by box. Section A and lender-chosen Section B fees generally can’t go up from the Loan Estimate, while prepaids, escrow and insurance can change.
Questions about comparing Loan Estimates
How do I compare two Loan Estimates?
Confirm both quote the same loan amount, term, product and loan type. Then compare the interest rate, Section A (including points), Section B and lender credits. Use the “In 5 Years” cost and APR on page 3 as the tie-breaker. Don’t choose based on prepaids, escrow or taxes, which are estimates.
Which numbers matter most on a Loan Estimate?
The interest rate, Section A origination charges, Section B services the lender picks, and lender credits. Together they show what the lender actually charges. Page 3’s “In 5 Years” figure combines them into one number for loans that match.
Why does one Loan Estimate show a lower cash to close?
Usually because it assumes a later closing date (less prepaid interest), fewer months of escrow, a cheaper title quote, or a lender credit paid for with a higher rate. Those can lower cash to close without lowering what the lender charges.
What is Section A on a Loan Estimate?
Section A, Origination Charges, lists the lender’s and broker’s own fees, such as application, processing and underwriting fees, plus any discount points. It’s the most important section to compare because it’s the lender’s price for making the loan.
Can I negotiate my Loan Estimate?
Yes. Ask what each Section A fee pays for and whether any can be waived, ask for the rate with zero points, and ask whether a lender credit is available. A competing Loan Estimate for the same loan is the strongest tool you have.
How long is a Loan Estimate good for?
Until your rate is locked, the rate, points and credits can change. The other closing costs are good until the expiration date on page 1. If you don’t tell the lender you want to proceed within 10 business days, they can issue a new estimate.
Is my Loan Estimate uploaded when I use this tool?
No. The PDF is read in your browser on your device. The tool reads the numbers in the boxes and the lender’s name, never your name or address. Nothing is sent unless you choose to send your comparison to Alex, and even then he gets the numbers, never the PDF.
What if I only have a paper copy or a photo?
Use “Type the numbers in” at the top of this page, or call or text Alex at (847) 899-6882 to go through it together.