Mortgage  Question?
Review mortgage closing costs determine if ripped off

What is the best way to review final closing costs for a mortgage to determine if you are being ripped off? My actual closing costs are much higher than the costs the lender quoted me.

Harry Jensen, Trusted Mortgage Expert with 45+ Years of Experience
, Trusted Mortgage Expert with 45+ Years of Experience

We provide a thorough overview and example of mortgage closing costs on FREEandCLEAR but the best way to understand how much and why your closing costs have changed is to compare your Closing Disclosure to the Loan Estimate that the lender provided at the beginning of the mortgage process. Lenders are legally required to provide a Loan Estimate within three days of applying for a mortgage that outlines the estimated loan terms including closing costs and interest rate. Lenders are also legally required to provide a Closing Disclosure at least three days prior to your loan closing that outlines the final, actual terms of the mortgage.

By comparing the Loan Estimate to the Closing Disclosure you can determine how much your mortgage terms, including closing costs, have changed from when you applied for the loan until prior to your loan closing. FREEandCLEAR provides a comprehensive overview of How to Compare the Closing Disclosure to the Loan Estimate. As we outline in our comparison overview, there are specific regulations about how mortgage costs can change and increase from the beginning of the mortgage process until when your mortgage closes. Certain closing costs can change without limit, certain costs can change by a maximum of 10% and certain costs are not permitted to change. Properly comparing the Closing Disclosure to the Loan Estimate will enable you to better understand if your lender is following the regulations or potentially ripping you off.

Please note that if you believe you are being ripped off and you cannot resolve the situation with your lender, you can cancel, or rescind, your mortgage any time prior to signing loan documents and you are free to work with another lender.

Finally, if you decide to cancel your loan with your current lender we always recommend that you shop multiple lenders to find the loan with the best terms. You can compare lenders in your area by clicking INTEREST RATES We advise you to contact at least four lenders to ensure that you find the mortgage with the lowest rate and closing costs.

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About the author

Harry Jensen, Mortgage Expert

Harry is the co-founder of FREEandCLEAR. He is a mortgage expert with over 45 years of industry experience. Over his career, Harry has closed thousands of loans for satisfied borrowers and now offers his advice and insights on FREEandCLEAR. More about Harry

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