This loan estimate summarizes a $162,000 fixed rate mortgage loan with a 3.875% interest rate to purchase a home for $180,000. The monthly principal and interest payment is $761.78 for 30 years. Closing costs total $8,054 and include origination charges, taxes, prepaid costs, title fees, and initial escrow payments. The borrowers must pay $16,054 at closing, which includes the closing costs, after receiving a $10,000 deposit. The loan has a prepayment penalty of up to $3,240 if paid off within the first 2 years.