Does this loan hide any traps?
The Loan Estimate flags risky loan features. These may include:
- Prepayment penalty: The mortgage has one if "yes" appears next to "Prepayment Penalty" on Page 1, along with the maximum amount.
- Balloon payment: The mortgage has one if "yes" appears next to "Balloon Payment" on Page 1, along with the size of the payment.
- Adjustable payments: If it's an adjustable-rate mortgage, an interest-only or step-payment loan, or a pay-option ARM, you'll find "yes" next to "Monthly Principal & Interest" on Page 1.