What does the Loan Estimate enable consumers to compare apart from the APR?

The Loan Estimate is a critical document provided to consumers in the loan process, as it outlines key financial aspects associated with a mortgage. While many factors are included in this document, the option that highlights its value, in addition to the Annual Percentage Rate (APR), is the total interest percentage.

The total interest percentage gives consumers an understanding of the total amount of interest they will pay over the life of the loan compared to the principal. This allows for a clearer comparison of different loan offers, beyond just the APR, which sometimes can be misleading since it does not always include certain fees associated with the loan. By analyzing the total interest percentage alongside the APR, consumers can make a more informed decision about which loan best fits their financial situation.

In contrast, while balloon payments, closing costs, and origination fees are essential aspects of the borrowing process, they do not provide the same level of comparative insight as the total interest percentage when assessing overall loan affordability and impact on finances over time.