Why does my cash-to-close keep changing every time I get an updated estimate?
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My lender quoted one rate and the Loan Estimate shows another? How can that happen?
Key Takeaways
- Mortgage rates change daily and sometimes multiple times per day.
- Lenders typically lock rates only after issuing the official Loan Estimate.
- Rate lock information appears in Section B of your Loan Estimate.
Why does my Loan Estimate show a different rate than quoted?
You received a rate quote from your lender, but the Loan Estimate shows a different rate—and you want to understand how that happened.
Mortgage rates change daily, and sometimes multiple times per day. When a lender gives you a verbal quote or early estimate, that rate reflects current market conditions at that moment. By the time the lender prepares your official Loan Estimate, rates may have moved up or down. Lenders typically lock your rate only after you submit a complete application and they issue the Loan Estimate.
Check the date on your Loan Estimate and compare it to when you received the initial quote. Look at Section A of the Loan Estimate, which shows your loan terms including the interest rate. The rate lock information appears in Section B—this tells you whether your rate is locked and for how long.
You can ask your lender to explain the difference between the quoted rate and the Loan Estimate rate. Many borrowers request a rate lock at application to protect against increases during processing. Your lender can walk you through current rates and available lock options for your loan.
About the Author
Dan Green
20-year Mortgage Expert
Dan Green is a mortgage expert with over 20 years of direct mortgage experience. He has helped millions of homebuyers navigate their mortgages and is regularly cited by the press for his mortgage insights. Dan combines deep industry knowledge with clear, practical guidance to help buyers make informed decisions about their home financing.
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