How to Read a Buyer’s Closing Disclosure

If you are getting a mortgage, then a Closing Disclosure is a five (5) page form that provides final details about the terms of your mortgage loan. The lender is required to give you the Closing Disclosure at least three (3) business days before you close. This three (3) day window allows you time to compare your final terms and costs to those estimated in the Loan Estimate which you originally received from your lender. An interactive sample to help you understand is below.

Interactive Buyer’s Closing Disclosure

(hover over highlighted terms for explanations)

closing-disclosure closing-date settlement-agent property sales-price borrower seller lender loan-term loan-amount interest-rate monthly prepayment-penalty balloon-payment payment-calculation p-i estimated-escrow estimated-total estimated-taxes closing-costs cash-to-close

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