How to Read Your Closing Disclosure: A Page-by-Page Breakdown

Page 1: Loan terms and projected payments

Page 1 is a summary of your loan. The top section confirms the basic facts: loan amount, interest rate, monthly principal and interest payment, and whether your rate is fixed or can adjust. Compare every number here to your Loan Estimate — if the interest rate changed or the loan amount is different, stop and ask why before proceeding.

The 'Projected Payments' table on Page 1 shows your estimated total monthly payment including principal, interest, mortgage insurance (if any), and escrow for taxes and insurance. Note that the escrow amounts are estimates based on current tax and insurance rates — they'll adjust annually.

The 'Costs at Closing' box at the bottom of Page 1 gives you the headline numbers: total closing costs and cash to close. These are accurate but not itemized — the details are on Pages 2 and 3.

Page 2: Closing cost details — the page that matters most

Page 2 is where you'll spend most of your review time. It itemizes every closing cost in four sections:

Section A — Origination Charges: Everything the lender charges to make the loan. This includes points, origination fees, and any lender-specific fees. This entire section is zero-tolerance — none of these fees can increase from your Loan Estimate.

Section B — Services You Did Not Shop For: Required third-party services where the lender selected the provider (appraisal, credit report, flood cert). Also zero-tolerance.

Section C — Services You Did Shop For: Title insurance, settlement/escrow fees, attorney fees. You were allowed to choose providers here. These fees can change if you chose a different provider than what was quoted on the LE, but the total of all Section C fees is subject to 10% tolerance.

Sections E–H cover prepaid items (interest, insurance), escrow setup, and other costs including transfer taxes and recording fees. The transfer tax and recording fee lines are government-set and non-negotiable, but verify the amounts are correct for your county.

Page 3: Cash to close and summaries

Page 3 shows two things: a calculation of your final cash to close, and a summary of all the money moving at closing. The cash to close calculation reconciles your purchase price, loan amount, down payment, closing costs, and any seller credits.

Check the seller credits line carefully. Any seller concessions negotiated in your purchase contract should appear here. If they don't match what was agreed, contact your agent and title company before closing.

The 'Summaries of Transactions' table on the right side of Page 3 is a full accounting of all money flowing in and out. This is useful for verifying that your earnest money deposit was properly credited.

Pages 4–5: Loan disclosures and total cost comparison

Page 4 contains loan disclosures about escrow accounts, late payment penalties, refinancing terms, and liability after foreclosure. Read the escrow section — if you waived escrow, verify that's reflected here. Check the late payment penalty amount and grace period.

Page 5 has two important tables. The 'Loan Calculations' table shows total payments, finance charges, and APR over the life of the loan — useful for comparing loan products. The 'Other Disclosures' section at the bottom covers appraisal rights, contract details, and liability limits.

The final table on Page 5 is a direct comparison between your Loan Estimate and Closing Disclosure. This is the fastest way to spot changes — any increased line item will stand out here. If you see any zero-tolerance fees that increased, request a cure from your lender before signing.