Closing Disclosure Explainer
This 5-page document is the Final Receipt for your loan. It replaces the HUD-1 and Truth-in-Lending forms. Compare these "Final" numbers against your "Loan Estimate" to ensure there are no surprises. This guide highlights what to check.
Download Sample Closing Disclosure (PDF)
Source: Consumer Financial Protection Bureau (CFPB) | consumerfinance.gov
PAGE 1 of 5
Closing Date 4/15/2013
Borrower Michael Jones and Mary Stone
Seller Steve Nelson and Amy Nelson
Property 456 Somewhere Ave, Anytown, ST 12345
Sale Price $180,000
Loan ID # 123456789
Loan Term 30 Years
Product Fixed Rate
Check Spelling
Ensure your name is spelled exactly right. Even a minor typo can cause delays with recording the deed.
Loan Terms
| Loan Amount | $162,000 |
|---|---|
| Interest Rate | 3.875% |
| Monthly Principal & Interest | $761.78 |
| Prepayment Penalty | Yes |
| Balloon Payment | NO |
Critical Check
Does the Loan Amount and Interest Rate match your most recent Loan Estimate? If the rate locked, it should be identical.
Costs at Closing
| Closing Costs | $9,712.10 |
|---|---|
| Cash to Close | $14,147.26 |
PAGE 2 of 5
Closing Cost Details
Loan Costs
| A. Origination Charges (Points, Admin Fees) | $1,802.00 |
|---|---|
| B. Services Borrower Did Not Shop For (Appraisal, Flood) | $236.55 |
| C. Services Borrower Did Shop For (Title, Survey) | $2,655.50 |
| D. TOTAL LOAN COSTS (A+B+C) | $4,694.05 |
Other Costs
| E. Taxes & Govt Fees (Recording) | $85.00 |
|---|---|
| F. Prepaids (Homeowner's Insurance, Interest) | $2,120.80 |
| G. Initial Escrow Payment at Closing | $412.25 |
| H. Other (HOA, Owner's Title Policy) | $2,400.00 |
| I. TOTAL OTHER COSTS | $5,018.05 |
J. TOTAL CLOSING COSTS (D + I)
$9,712.10
Did Costs Change?
Compare "Services Borrower Did Not Shop For" with your Loan Estimate. These fees generally cannot increase. "Services You Did Shop For" can increase by up to 10% in aggregate.
PAGE 3 of 5
Calculating Cash to Close
This table compares your final costs to the Loan Estimate.
| Item | Loan Estimate | Final | Did this change? |
|---|---|---|---|
| Total Closing Costs (J) | $8,054.00 | $9,712.10 | YES |
| Closing Costs Paid Before Closing | $0 | -$29.80 | YES |
| Down Payment/Funds from Borrower | $18,000.00 | $18,000.00 | NO |
| Deposit | -$10,000.00 | -$10,000.00 | NO |
| Cash to Close | $16,054.00 | $14,147.26 | YES |
Summaries of Transactions
Borrower's Transaction
Due from Borrower at Closing
$189,762.30
Sale Price: $180,000.00
Closing Costs: $9,682.30
Closing Costs: $9,682.30
Paid Already/On Behalf of Borrower
-$175,615.04
Cash to Close: $14,147.26
PAGE 4 of 5
Additional Information About This Loan
Loan Disclosures
- Assumption: "Will Not Allow". This means a future buyer cannot assume this loan.
- Demand Feature: "Does Not Have". The lender cannot demand early repayment unless you default.
- Late Payment: If payment is more than 15 days late, fee is 5% of monthly principal & interest.
- Negative Amortization: "Does Not Have". Your loan balance will not increase if you make scheduled payments.
- Escrow Account: YES. Your monthly payment includes Property Taxes and Homeowner's Insurance.
PAGE 5 of 5
Loan Calculations
| Total of Payments | $285,803.36 Total you will have paid after 30 years |
|---|---|
| Finance Charge | $118,830.27 The dollar amount the loan will cost you |
| Amount Financed | $162,000.00 |
| Annual Percentage Rate (APR) | 4.174% |
| Total Interest Percentage (TIP) | 69.46% |
APR vs Rate
Your Interest Rate is 3.875%, but your APR is 4.174%. The APR is higher because it includes the closing costs (origination fees) spread over the life of the loan.
Contact Information
Lender: Ficus Bank
Settlement Agent: Epsilon Title Co.
Settlement Agent: Epsilon Title Co.