Real Estate Settlement Procedures Act (RESPA) Disclosures

OMB No. xxxx-xxxx
Approval Expires mm/dd/yyyy

Good Faith Estimate (GFE)

Name of Originator

Borrower

Originator
Address

Property
Address

Originator Phone Number
Originator email

Date of GFE

Instructions

This GFE gives you an estimate of your settlement charges and loan terms if you are approved for this loan.
See page 3 for more detailed instructions.

Important dates

1. The interest rate for this GFE is available until
. After that date, the interest rate, some of your
Loan Origination Charges, and the monthly payment shown below can change until you lock your interest rate.
2. This estimate for all other settlement charges is available until
3. If you proceed with this loan, you must go to settlement in
days before settlement.

Summary of your
loan terms

.
days. You must lock the interest rate at least

Your Loan Details
Your initial loan balance is

$

Your loan term is

years

Your initial interest rate is

%

Your initial monthly amount owed for principal,
interest, and any mortgage insurance is

$

per month
days

Your rate lock period is
After you lock in your interest rate, you must
go to settlement within this number of days to
guarantee this interest rate.

Summary of your
settlement charges

Can your interest rate rise?

c

No

c

Yes, it can rise to a maximum of

Can your loan balance rise?

c

No

c

Yes, it can rise to a maximum of $

Can your monthly amount owed for principal,
interest, and any mortgage insurance rise?

c

No

c

Yes, it can rise to a maximum of $

Does your loan have a prepayment penalty?

c

No

c

Yes, your maximum prepayment penalty is
$

Does your loan have a balloon payment?

c

No

c

Yes, you have a balloon payment of
$
due in
years.

Does your loan include a monthly escrow
payment for property taxes and, possibly,
other obligations?

c

No

c

Yes

A
B

Your Adjusted Origination Charges (Table A, page 2)

$

Your Charges for All Other Settlement Services (Table B, page 2)

$

A+B

Total Estimated Settlement Charges

%

$

Good Faith Estimate (GFE)

1

Understanding
your estimated
settlement charges

Your Loan Details
1. Our service charge
These charges are for the services we provide when we get and process this loan
for you.
2. Your credit or charge for the specific interest rate chosen (points)
c

The credit or charge for the interest rate you have chosen is included in “Our
service charge.” (See item 1 above.)

c

You receive a credit of $
This credit reduces your upfront charges.

c

You pay a charge of $
for this interest rate of
%.
This payment (discount points) increases your upfront charges. (See the table
on page 3 to see how you can change this charge or credit by choosing a
different interest rate.)

A

for this interest rate of

Your Adjusted Origination Charges

%.

$

Your Charges for All Other Settlement Services
3. Required services that we select
These charges are for services we require to complete your settlement. We will
choose the providers of these services.
Service

Charge

4. Title services and lender’s title insurance
This charge includes the services of a title agent, for example, and title
insurance to protect the lender, if required.
5. Required services that you can shop for
These charges are for other services that are required to complete your
settlement. We can refer you to providers of these services or you can shop for
them yourself. Our estimates for providing these services are below.
Service

Charge

6. Government recording and transfer charges
This includes state and local charges on mortgages and home sales.
7. Reserves or escrow
This charge is held in an escrow account to pay recurring charges on your
property, such as property taxes or insurance.
8. Daily interest charges
This charge is for the daily interest on your loan from the day of your settlement
until the first day of the next month or the first day of your normal mortgage
payment cycle. For this loan, this amount is $
per day for
days
(if your closing date is
).
9. Homeowner’s insurance
This charge is for the insurance you must buy for the property to protect from
a loss, such as fire.
10. Optional owner’s title insurance
This charge is for additional insurance you can choose to buy to protect
yourself from title defects.

B

Your Charges for All Other Settlement Services

A+B

Total Estimated Settlement Charges

$

$

Good Faith Estimate (GFE) 2

Important Information and Instructions
Shopping for a
loan offer

Only you can shop for the best loan for you. Compare this GFE with other loan offers, so you can find the
best loan. Use the table on page 4 to compare all the offers you receive.

Understanding
which charges
can change at
settlement

The GFE estimates your settlement charges. At your settlement, you will receive a HUD-1. Compare the
charges on the HUD-1 with the charges on this GFE. Charges can change if you select your own provider and
do not use the companies your lender suggests.
The list below shows you how much the estimated charges on this GFE can change at your closing.
These charges

The total of these charges
can increase up to 10%
at settlement:

cannot increase
at settlement:

• Our service charge
• Your charge or credit for the
specific interest rate chosen
(after you lock in your interest
rate)
• Government recording and
transfer charges

• Required services that we select
• Title services and lender’s title
insurance (if we select them or
you use providers identified by
us)

can change

at settlement:

• Required services that you can
shop for (if you do not use
providers identified by us)
• Title services and lender’s title
insurance (if you do not use
providers identified by us)

• Required services that you can
shop for (if you use providers
identified by us)

• Reserves or escrow
• Daily interest rate charges

• Optional owner’s title insurance
(if you use providers identified
by us)

Looking at trade-offs

These charges

• Homeowner’s insurance
• Optional owner’s title insurance
(if you do not use providers
identified by us)

In this GFE, we offered you a particular interest rate and estimated settlement charges. But, you could
choose other loans to get a lower interest rate or lower settlement charges.
g

If you want to choose a loan with a lower interest rate, then you will have higher settlement charges.

g

If you want to choose a loan with lower settlement charges, then you will have a higher interest rate.

The table below shows how the loan for this GFE compares to two other options. If you decide you want to
make one of these trade-offs, you must ask us for a new GFE.

The loan in this GFE

A loan with a lower
interest rate

A loan with lower
settlement charges

Your loan amount

$

$

$

Your interest rate

How much your monthly payment will be

$

$

$

How much more or less in monthly
payments from this GFE

No Change

You will pay $
less every month

You will pay $
more every month

How much more or less you will pay at
settlement with this interest rate

No Change

Your lower interest
rate will raise your
settlement charges by
$

Your higher interest
rate will lower your
settlement charges by
$

How much your total estimated
settlement charges will be

$

$

$

%

%

%

If this loan offer is for an adjustable rate loan, the comparisons in the table are for the initial interest rate
before any adjustments are made.

Good Faith Estimate (GFE) 3

Your financial
responsibilities as
a homeowner

In addition to your monthly amount owed for principal, interest, and mortgage insurance, you may need to pay
other required annual charges to keep your property. We must provide an estimate for annual property taxes
along with homeowner’s, flood, and other required property protection insurance, but we are not required
to provide estimates for the other charges. You may have to identify the other charges and ask for additional
estimates from others.
Different sources might use different techniques to estimate these charges, but the actual charges will be the
same in the end. Therefore, do not use these estimates to compare settlement charges from different loan
originators.
Annual property taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ___
Annual homeowner’s insurance . . . . . . . . . . . . . . . . . . . . . . . . . .___________
Annual flood insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .___________
Annual homeowners association/condominium fees. . . . . . . .___________
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total Other Annual Charges . . . . . . . . . . . . . . . . . . . . . . . .

Applying for
this loan

If you decide you would like to apply for this loan, contact us at
You must pay a fee of $
. This fee will be subtracted from your settlement charges.

Getting more
information

The type of loan you choose can affect your current and future monthly payments. You can ask us for more
information about loan types. You can also look at several government publications: HUD’s Special Information
Booklet on settlement charges, your Truth-in-Lending Disclosures, and consumer information publications of
the Federal Reserve Board.

Using the
shopping chart

Use this chart to compare Good Faith Estimates (GFEs) from different loan originators. Fill in the information by
using a different column for each GFE you receive.

.

By comparing loan offers, you can shop for the best loan.

Loan 1

Loan 2

Loan 3

Loan 4

Loan Originator Name
Initial Loan Balance
Loan Term
Initial Interest Rate
Initial Monthly Amount Owed
Rate Lock Period
Can Interest Rate Rise?
Can Loan Balance Rise?
Can Monthly Amount Owed Rise?
Prepayment Penalty?
Balloon Payment?

Total Estimated
Settlement Charges

If your loan is sold
in the future

Lenders can receive additional fees by selling your loan at some future date after settlement. Once you have
obtained your loan at settlement, however, your loan terms, adjusted origination charges, and total settlement
charges cannot change. After settlement, any fees lenders receive in the future cannot change the loan you
received or the charges you paid at settlement.

Good Faith Estimate (GFE) 4