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Home / Borrow / Understanding Your Home Equity Loan Estimate
At Fidelity Bank, we believe you should feel confident from the moment you apply for a Home Equity Installment Loan. A Loan Estimate (LE) is a standardized, three-page form designed to make the terms and costs of your loan easy to understand and compare.
Federal law requires lenders to provide this document within three business days of receiving your application. It is your roadmap to exactly what your loan will look like before you commit.
The LE is more than just a summary; it’s a detailed breakdown of your financial commitment, including:
The Fundamentals: Your total loan amount, interest rate, and monthly principal and interest payment.
The Bottom Line: Your estimated closing costs and the total “cash needed to close.”
Local Costs: Estimated property taxes, homeowners insurance, and any relevant assessments.
The Fine Print: Whether your rate is fixed or can change (ARM), and if the loan includes features like a prepayment penalty or balloon payment.
The Loan Estimate is a powerful tool for the proactive homeowner. It allows you to:
Compare with Confidence: Because the format is standardized, you can easily compare Fidelity Bank’s offer against any other lender.
Budget Accurately: By seeing your estimated taxes and insurance upfront, you can plan your monthly household budget without guesswork.
Eliminate Surprises: The LE sets the “ceiling” for many of your costs, ensuring you aren’t caught off guard at the closing table.
Once you provide your name, income, Social Security number, property address, estimated property value, and the loan amount you’re seeking, we will issue your LE within three business days.
Typically, the terms outlined in your Loan Estimate are good for 10 business days from the date it is issued.
While the LE is an estimate, many fees are legally restricted from changing. Here is how they break down:• Fees That Cannot Change: Lender origination charges and fees for services you cannot shop for (like your credit report or appraisal) must remain the same on your final Closing Disclosure.• Fees With a 10% Limit: Recording fees and services you shop for from our recommended provider list can increase, but by no more than 10% in total.• Fees That Can Change Freely: Items like prepaid homeowners insurance, property taxes, and services where you choose your own provider (not on our list) may fluctuate based on market rates or your choices.
Lenders are required to “err on the side of caution.” The Loan Estimate is designed to show the maximum likely costs. We prefer to disclose a higher amount upfront so that your final costs are a pleasant surprise, rather than an unexpected burden.
In many cases, yes. Eligible borrowers may qualify for a closing-cost waiver, typically based on the loan amount. If you qualify, this waiver will be clearly highlighted on your final Closing Disclosure. Your Fidelity loan officer will review these final terms with you line-by-line before you sign.
Applicants who have reviewed and approve their Loan Estimates submit an “Intent to Proceed” in one of two ways:• Sign and return their early disclosures—either electronically or by paper—to their loan officer or their nearest branch.Or• Calling your loan officer after you have received and reviewed their Loan Estimate.
Ready to apply? Our team is ready to help you navigate the process. Start Your Application
Have more questions? Visit the Consumer Financial Protection Bureau (CFPB) for more in-depth guides on Loan Estimates.
If you are new to Home Equity, select from the following links to help you make an informed decision.
Home Equity Overview
What is a HELOC and how does it work?
How do I get a HELOC?
What are the qualifications requirements for a HELOC?
What is a Rate Lock and how does it work for me?
HELOC or Cash-Out Refinance?
HELOC FAQs
HELOC vs. Home Equity Loan: Which Is Best for You?
For more information or questions, please contact us by phone at 1-800-388-4380 or email us at Fidelity@fddbank.com.
DisclaimerThe information contained in this document is provided for educational and informational purposes only and does not constitute financial, legal, or tax advice. All Home Equity Installment Loans (HEILs) are subject to comprehensive credit review, verification of collateral, eligibility requirements, and final underwriting approval. Loan terms, conditions, and availability are not guaranteed and may vary based on individual qualifications and institutional lending policies.
