Definition
Under TRID regulations, certain costs shown on Loan Estimates have limits on how much they can increase by closing. Most lender fees cannot increase more than 10% from estimate to closing. This protects you from surprise cost increases.
Not sure where this fits?
Answer a few questions and we’ll open the path that fits, at the right step.
Find my pathAbout this term
Most lender fees cannot increase more than 10% from estimate to closing; some fees (like appraisal, credit report) can be exact but not increased. Title insurance and property tax estimates can vary by 10%. This protection helps borrowers rely on loan estimates when comparing offers.
Pro Tip
Use loan estimate accuracy rules to hold lenders accountable; their fees shouldn't increase more than 10% from estimate to closing.
Example
A lender's origination fee of $2,000 on the Loan Estimate cannot exceed $2,200 on the Closing Disclosure (10% cap).