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For PITI's sake: Mortgage acronyms defined

Mortgage » For PITI's sake: Mortgage acronyms defined

LE and CD
LE and CD © iStock

LE and CD

The Loan Estimate, or LE, is a document that provides details about a mortgage that the borrower has applied for. The lender is required to mail or deliver it within 3 business days of the loan application.

The LE describes the interest rate on the mortgage, shows whether the rate is fixed or adjustable, summarizes the estimated loan costs, calculates how much money the borrower will need to take to the closing table and contains loan-comparison calculations that encourage borrowers to apply at more than 1 lender and compare loan offers.

Three days before closing, the lender is required to deliver the Closing Disclosure, or CD. This document itemizes the loan costs. The CD is designed to make it fairly easy to compare with the LE, so borrowers can see if the lender changed any terms of the mortgage.

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