Explaining the Closing Disclosure Form

Explaining the Closing Disclosure

The Closing Disclosure is the form used by settlement companies to disclose to the borrower the actual terms and costs of the transaction in relation to the estimated terms and costs outlined on the Loan Estimate Form.The Closing Disclosure is 5 pages long and combines and replaces the Truth In Lending Act disclosure and the HUD-1 Settlement Statement. The new form breaks down all charges associated with the transaction and clearly outlines the terms of the loan for the borrower.

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Annotated closing disclosure form showing borrower and loan info, sale price, loan terms, monthly payment details, escrow estimates, closing costs, and total cash to close.

Page showing detailed breakdown of closing cost details for loans with numbered annotations linking explanations about loan costs, title processing fees, mandatory taxes, prepaid insurance and taxes, escrow payments, and other property sale costs.

Page 3 of closing disclosures explaining buyer's cash to close calculation with numbered red arrows pointing to sections detailing transaction costs, amounts paid before closing, seller credit, and final cash to close amount.

Loan disclosure page detailing assumptions, demand feature, late payment penalties, negative amortization, partial payments, security interest, escrow account details, and related payment tables.

Page 5 of a loan disclosure document titled Loan Calculations showing total payments, finance charge, amount financed, APR, and TIP with sections on Other Disclosures including appraisal, contract details, liability after foreclosure, refinance, and tax deductions, followed by contact information table and signature lines for applicant and co-applicant.

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