What are the key components that must be included in the loan estimate?

The correct choice encompasses essential elements that a lender is required to provide to borrowers under the TILA-RESPA Integrated Disclosure rule. A loan estimate serves as an important document that outlines the costs and terms of the mortgage loan.

Including loan terms ensures that borrowers understand the key aspects of the agreement, such as the loan type, interest rate, and whether the rate is fixed or adjustable. Projected payments are vital as they provide borrowers with clarity on their anticipated monthly obligations, helping them budget effectively.

Additionally, specifying closing costs is critical since this gives borrowers a transparent view of the expenses that will be incurred at closing, which can significantly affect the overall cost of the loan. Other disclosures included ensure compliance with regulatory requirements and that borrowers have access to important information related to their financial responsibilities, including APR (Annual Percentage Rate) and potential risks associated with the loan.

The other choices lack the comprehensive nature required for a loan estimate, omitting critical components or including elements that do not fall within the mandatory disclosures necessary for a clear understanding of the loan agreement.