What is one of the key features included in a Loan Estimate?

The key feature included in a Loan Estimate is the specifics of the mortgage loan, including associated costs and risks. This document is essential for borrowers as it provides a clear and concise summary of the loan terms, including the interest rate, monthly payment amount, and all fees related to the mortgage. It helps borrowers understand the total cost of the loan over its lifetime and details any potential risks, such as adjustable rates or prepayment penalties.

This transparency allows borrowers to compare different loan offers effectively, promoting informed decision-making, and ensuring that they are aware of what to expect financially when entering into a mortgage agreement. While buyer credit history, seller closing costs, and appraisal value can be relevant aspects of the home-buying process, they are not contained within the Loan Estimate itself.