Questions

Loan estimate FAQ

Plain answers to the questions borrowers ask most. When you want the numbers for your own offers, compare offers does the math.

Loan estimate basics

What is a Loan Estimate?: A standardized three-page form a lender must give you within three business days of your application. Because the layout is identical at every lender, the same line on two estimates is directly comparable — which is exactly what this tool relies on.
Which numbers matter most?: Interest rate, APR, monthly principal and interest, total closing costs, discount points, and lender credits. Together they decide both what you pay up front and what you pay every month.
How many offers should I collect?: Three is the usual sweet spot. Applications made inside a short shopping window count as a single credit inquiry, so gathering several estimates does not meaningfully hurt your score.

Why is APR higher than the interest rate?: APR folds the lender's costs — origination, points, and certain prepaid items — into a single annualized figure. A large gap between rate and APR usually means the low rate was bought with heavy upfront cost.
Are discount points worth it?: Only if you keep the loan past the break-even point. Divide the extra upfront cost by the monthly saving: if that lands beyond how long you plan to own or hold the loan, the points lose money.
What about a lender credit?: It is points in reverse: the lender pays part of your closing costs in exchange for a higher rate. Good for short holds and tight cash, expensive if you stay for the full term.

How is the best offer chosen?: Every offer is scored on APR, upfront cost, monthly payment and break-even. Each measure is normalized against the others, multiplied by your weights, and totalled — so the winner reflects your priorities, not a single headline figure.
Can I change the weights?: Yes. The panel beside the table lets you push weight toward upfront cost if cash is tight, or toward APR and payment if you plan to stay put for the long haul. The ranking updates immediately.
Are my uploaded files sent anywhere?: No. Everything you enter stays in your browser for this session. Nothing is stored or shared.