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THE NEW CLOSING DISCLOSURE EXPLAINED
Page 1.
The first page of the Closing Disclosure is almost identical to Page 1 of the
Loan Estimate. It describes the:
•
Loan terms
•
Loan amount
•
Interest rate
•
Monthly P&I, and
•
Any prepayment penalty or balloon payment
This page also provides the projected payments over the life of the loan.
This page also discloses to the borrower what amounts will be deposited
into their impound or escrow account and provides the total estimated
closing costs and cash to close.
Page 2.
The second page is similar to the current Page 2 of the HUD-1 Settlement
Statement. It provides a breakdown of all the closing cost details and lists all
loan costs and other costs paid by borrower, seller, and other parties.




