Closing Disclosure (CD): Line-By-Line Itemization Guide
This guide breaks down every key section of the Closing Disclosure (CD)—the modern, federally required form that replaced the HUD-1 for most consumer mortgage loans. Use this page to understand fees, charges, prorations, payoffs, and the exact cash-to-close calculations shown on your CD.
For the full definition, see our Closing Disclosure Overview.
📌 When Is the Closing Disclosure Required?
The Closing Disclosure is required under TRID (TILA-RESPA Integrated Disclosure) for nearly all consumer residential mortgages:
- Conventional mortgages
- FHA loans
- VA loans
- USDA loans
- Refinances of covered loans
If the buyer is financing, they will receive a CD—not a HUD-1.
📄 How the Closing Disclosure Works
The CD provides an itemized list of:
- Loan terms & payments
- Closing costs (broken into exact components)
- Prorations & adjustments
- Property taxes & escrow
- Credits & seller concessions
- Cash to close amounts
Borrowers must receive it at least 3 business days before closing.
🧭 Why the Line-By-Line Breakdown Matters
The Closing Disclosure determines:
- The accuracy of lender fees and title charges
- The correctness of tax prorations and HOA adjustments
- The seller’s exact net proceeds
- The buyer’s exact cash needed to close
- Whether lender quotes match final charges
📘 Closing Disclosure: Full Line-By-Line Itemization
PAGE 1 — Loan Terms, Projected Payments & Costs at Closing
💰 Loan Terms
- Loan Amount — final financed amount
- Interest Rate — fixed or adjustable
- Monthly Principal & Interest
- Prepayment Penalty (rare today)
📅 Projected Payments
- Breakdown of P&I
- Mortgage insurance timeline
- Estimated escrow
- Total monthly payment
🏁 Costs at Closing
- Closing Costs subtotal
- Cash to Close for buyer
PAGE 2 — Itemized Closing Costs
🧑💼 A. Origination Charges
- Origination fee
- Discount points
- Underwriting / processing fees
🏦 B. Services You Cannot Shop For
- Appraisal
- Credit report
- Flood certification
- Tax service fee
📋 C. Services You Can Shop For
- Title search
- Settlement fee
- Lender’s title insurance
- Survey (in some states)
🔒 D. Taxes & Other Government Fees
- Recording fees
- Transfer taxes
🏦 E. Prepaids
- Homeowner’s insurance
- Prepaid interest
- Property taxes
💼 F. Initial Escrow Payment at Closing
- Insurance reserves
- Tax reserves
- Mortgage insurance reserves
📑 G. Total Closing Costs
PAGE 3 — Calculating Cash to Close
💵 Cash-to-Close Table
- Total closing costs
- Down payment
- Deposits / earnest money
- Seller credits
- Adjustments / prorations
PAGE 4 — Loan Disclosures
- Assumption rules
- Demand features
- Late payment rules
- Escrow disclosures
PAGE 5 — Loan Calculations & Contact Information
- APR
- TIP (Total Interest Percentage)
- Finance charge
- Amount financed
- Lender, title, and real estate contact info
📋 Detailed Closing Disclosure Itemized Template (Sections A–G)
Use this expanded template to record or estimate every line item from Page 2 of the official Closing Disclosure.
| Section | Fee Description | Amount ($) |
|---|---|---|
| A. Origination Charges | ||
| Origination Fee | ________ | |
| Discount Points (Buydown) | ________ | |
| Underwriting / Processing | ________ | |
| B. Services You Cannot Shop For | ||
| Appraisal Fee | ________ | |
| Credit Report Fee | ________ | |
| Flood Determination / Certification | ________ | |
| Tax Service Fee | ________ | |
| C. Services You Can Shop For | ||
| Title Search / Abstract | ________ | |
| Settlement / Escrow Fee | ________ | |
| Lender’s Title Insurance | ________ | |
| Survey (if applicable) | ________ | |
| D. Taxes & Government Fees | ||
| Recording Fees (Deed, Mortgage) | ________ | |
| Transfer Taxes / Stamps | ________ | |
| E. Prepaids | ||
| Homeowner’s Insurance (12 months) | ________ | |
| Prepaid Interest (___ days) | ________ | |
| Property Taxes (proration) | ________ | |
| F. Initial Escrow Payment at Closing | ||
| Insurance Escrow (___ months) | ________ | |
| Tax Escrow (___ months) | ________ | |
| Mortgage Insurance Escrow (if any) | ________ | |
| G. Total Closing Costs | ________ | |
For cash deals and seller financing, see the HUD-1 Line-By-Line Guide.
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