Short answer: the federal rule sorts the closing costs on your Loan Estimate into three groups. Fees paid to the lender, a mortgage broker or their affiliates, and fees for required services you were not allowed to shop for, may not go up at all. The total of recording fees and fees for required services from a provider on the lender’s written list may not go up by more than 10 percent. Prepaid interest, insurance premiums, escrow deposits and a few others have no limit. A changed circumstance can let the lender give you a revised Loan Estimate, and if you paid more than the limits allow, the lender must refund the excess no later than 60 days after closing. This page covers federal law only; other rules may apply where you live. It is general information, not legal or financial advice.
The rule
An estimated closing cost is in good faith “if the charge paid by or imposed on the consumer does not exceed the amount originally disclosed”, except in the cases the rule lists (12 CFR 1026.19(e)(3)(i), eCFR, text up to date as of October 28, 2026, read October 30, 2026). The lender must deliver or mail the Loan Estimate no later than the third business day after it gets your application (1026.19(e)(1)(iii)(A)). The CFPB says it is illegal for lenders to deliberately underestimate the costs on your Loan Estimate (CFPB, last reviewed September 11, 2024, read October 30, 2026; this page may be out of date).
The three groups
| Group | What is in it | Section |
|---|---|---|
| May not go up at all | Any charge outside the two groups below, such as fees paid to the lender, a mortgage broker or an affiliate of either, fees for required services you were not allowed to shop for, and transfer taxes | 1026.19(e)(3)(i) |
| Total may not go up by more than 10 percent | Recording fees, and fees for third-party services when the provider is not the lender or its affiliate and the lender let you shop for the service | 1026.19(e)(3)(ii) |
| No limit, if the estimate used the best information the lender reasonably had | Prepaid interest; property insurance premiums; amounts put into escrow; fees for services you shopped for when you picked a provider not on the lender’s list; property taxes and fees for services the lender does not require | 1026.19(e)(3)(iii) |
The CFPB gives the same three groups and adds that if a provider you picked from the lender’s list is an affiliate of the lender, the cost may not change at all (CFPB). The 10 percent limit applies to the total of the group, not to each fee (1026.19(e)(3)(ii)(A)).
The written list of providers
If the lender lets you shop for a service, the Loan Estimate must say which services you may shop for, and the lender must give you a separate written list naming at least one available provider for each one and saying you may choose a different provider (1026.19(e)(1)(vi)(B) and (C)). Which group a fee lands in depends on that choice: a provider from the list keeps the fee in the 10 percent group, and a provider not on the list moves it to the group with no limit.
When the lender may use a revised Loan Estimate
The lender may measure the limits against a revised estimate instead of the first one only for the reasons in 1026.19(e)(3)(iv):
- A changed circumstance that raises the charges: an extraordinary event beyond anyone’s control or another unexpected event specific to you or the loan; information the lender relied on that was inaccurate or changed; or new information specific to you or the loan that it did not rely on before ((e)(3)(iv)(A)).
- A changed circumstance that affects your creditworthiness or the value of the home and makes you ineligible for an estimated charge ((e)(3)(iv)(B)).
- You asked for changes to the loan terms or the settlement that raise a charge ((e)(3)(iv)(C)).
- The rate was not locked when you got the Loan Estimate, and the points or lender credits changed; the lender must send a revised Loan Estimate no later than three business days after the rate is locked ((e)(3)(iv)(D)).
- You said you wanted to go ahead more than 10 business days after the Loan Estimate was provided, or after any longer period the lender set ((e)(3)(iv)(E)).
- On a new-construction loan expected to close more than 60 days after the Loan Estimate, if the Loan Estimate clearly said revised disclosures may be issued ((e)(3)(iv)(F)).
The CFPB gives examples: you chose a different kind of loan or changed your down payment, the appraisal came in higher or lower than expected, a new loan or a missed payment changed your credit, or the lender could not document overtime, bonus or other income (CFPB). To get a copy of the appraisal, see your right to a copy of the home appraisal.
Timing of a revised Loan Estimate
The lender must provide the revised Loan Estimate within three business days of getting enough information to show that one of those reasons applies (1026.19(e)(4)(i)). It may not send a revised Loan Estimate on or after the day it provides the Closing Disclosure, and you must receive the revised one no later than four business days before closing. If it is not handed to you in person, you are treated as receiving it three business days after it is delivered or mailed (1026.19(e)(4)(ii)). For that four-day rule, a business day is every calendar day except Sundays and federal legal public holidays (12 CFR 1026.2(a)(6), eCFR). A revised Loan Estimate given for another reason does not reset the limits.
A refund, only for the math
This example is only for the math, and all figures and dates are example figures, not fees for any loan. No changed circumstance happened, and the title services and settlement agent were picked from the lender’s list and are not affiliates of the lender.
| Fee | Loan Estimate | At closing |
|---|---|---|
| Recording fees | $150 | $175 |
| Title services (provider from the list) | $1,000 | $1,100 |
| Settlement agent (provider from the list) | $650 | $800 |
| Total of the 10 percent group | $1,800 | $2,075 |
| Lender origination fee (may not go up) | $1,200 | $1,300 |
| Prepaid interest (no limit) | $300 | $420 |
| Step | Amount |
|---|---|
| Largest total allowed for the 10 percent group: $1,800 x 1.10 | $1,980 |
| Excess in the 10 percent group: $2,075 - $1,980 | $95 |
| Excess on the origination fee: $1,300 - $1,200 | $100 |
| Prepaid interest: no refund, as it has no limit | $0 |
| Refund owed: $95 + $100 | $195 |
If the loan closed on Monday, March 15, 2027, the lender would have until Friday, May 14, 2027, 60 days later, to refund the $195 and to deliver or mail a corrected Closing Disclosure that shows the refund (1026.19(f)(2)(v)). The title fee alone went up by more than 10 percent, but only the total of the group counts.
If the costs went up
The CFPB says that if your application had a change in circumstances you will likely receive a revised Loan Estimate, and that if costs rose more than the limits allow without one, you are entitled to a refund of the amount above the limits (CFPB). If you get a revised Loan Estimate, the CFPB suggests asking the lender why you received it and how it changes your loan amount, rate, monthly payment and cash to close (CFPB, last reviewed August 9, 2024; this page may be out of date). The CFPB also notes that a reverse mortgage, a HELOC, a manufactured home loan not secured by real estate and some homebuyer assistance loans do not come with a Loan Estimate.
To read the APR and finance charge on your papers, see how to read a loan disclosure. For a refinance, see cash-out refinance vs personal loan. To complain, use consumerfinance.gov/complaint. For your own case, ask a lawyer; you can look for legal aid through the Legal Services Corporation.
Questions to ask your lender
- Which of my closing costs are in each of the three groups?
- Which services may I shop for, and is any provider on your list your affiliate?
- Is my rate locked, and until when?
- Why did I get a revised Loan Estimate, and which reason in the rule applies?
- If a fee went over the limit, when will I get the refund and a corrected Closing Disclosure?
Checklist
- Keep every Loan Estimate you get and compare it with the Closing Disclosure.
- Lender, broker and affiliate fees: may not go up without a valid reason for a revised estimate.
- Recording fees and services from the lender’s list: the total may not rise by more than 10 percent.
- Prepaid interest, insurance, escrow and services you picked off the list: no limit.
- Excess over the limits: refunded no later than 60 days after closing.
Start your loan request How our service works
Sources
- eCFR: 12 CFR 1026.19, Certain mortgage and variable-rate transactions (Regulation Z), current text up to date as of October 28, 2026
- eCFR: 12 CFR 1026.2, Definitions and rules of construction (Regulation Z), current text up to date as of October 28, 2026
- CFPB: Can my final mortgage costs increase from what was on my Loan Estimate? (last reviewed September 11, 2024)
- CFPB: I received a revised Loan Estimate from my lender showing a higher interest rate and increased closing costs. What does this mean? (last reviewed August 9, 2024)
- CFPB: Loan Estimate explainer (page last modified October 29, 2025)
- CFPB: Submit a complaint
- Legal Services Corporation: Find legal aid
Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.