mortgage

For PITI's sake: Mortgage acronyms defined

GFE and HUD-1
GFE and HUD-1

A good faith estimate, or GFE, is a document that lenders are required to provide prospective borrowers detailing the estimated costs of the mortgage loan. The costs listed on the GFE typically include the lender's origination fee, points (if any), escrow or attorney's closing fees, title insurance, appraisal fee, and various other taxes and expenses. However, the exact list will vary by state, and borrowers should remember that the actual cost of the loan can change.

When the mortgage officially closes, lenders are required to state the actual costs of the loan on a HUD-1 form. (HUD is an acronym for the Department of Housing and Urban Development.) The HUD-1 should track with the GFE, but it can also include other costs, such as a broker's commission, which might not have been included in the original estimate.

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
MORTGAGE & REAL ESTATE NEWSLETTER

Timely market news and advice for consumers ready to buy, sell or invest in real estate. Delivered weekly.

Blog

Judy Martel

Slow thaw in housing

March housing numbers reflect problems with costs, supply and demand.  ... Read more

advertisement
Partner Center
advertisement

Connect with us