A complete reference guide to every numbered section on the federal closing disclosure form.
The closing disclosure form is CFPB Form H-25. It has five pages, numbered sections, and a layout that has been standardized across every federally backed mortgage loan since October 2015. Once you understand what each numbered section does, you can navigate any closing disclosure without confusion.
This guide walks through every section of the form in order.
Page 1 is the snapshot. It answers the three most important questions in the transaction: what loan are you getting, what will your monthly payment be, and how much cash do you need at closing.
At the very top, a header box identifies the transaction. It includes:
The Loan Terms box has five rows covering the loan amount, interest rate, monthly principal and interest, prepayment penalty, and balloon payment. For each of the last two items, there is a column asking "Can this amount increase after closing?" For a standard 30-year fixed loan, the answers should all be NO.
If you see YES next to the interest rate, you have an adjustable-rate mortgage. If you see YES next to the balloon payment line, your loan has a balloon structure. These are not necessarily problems but they require your attention.
This table shows the breakdown of your estimated monthly payment, including:
The projected payments table may show different payment amounts for different time periods. This is common when mortgage insurance is scheduled to drop off, or when an ARM loan adjusts.
Two numbers matter here.
Closing Costs is the sum of all fees on pages 2 and 3, not including your down payment. This matches the total on page 3.
Cash to Close is the total amount you need to bring to the closing table. It includes your down payment, closing costs, prepaids, initial escrow deposit, and any credits. This is the check or wire amount you will need to arrange before closing day.
Page 2 is where every fee in the transaction is listed. It is divided into lettered sections, and each section has a defined tolerance category that limits how much fees can increase from your Loan Estimate.
Section A contains all fees charged by your lender to originate the loan. Common line items include:
Tolerance: zero. These fees cannot increase from the amounts shown on your Loan Estimate without a documented changed circumstance. If they went up, you are owed a credit or an explanation.
Section B lists fees for services that were required by the lender and for which you were not given a choice of provider. Common items:
Tolerance: 10% in aggregate. The total of all Section B fees cannot increase by more than 10% from your Loan Estimate. Individual fees can shift as long as the aggregate stays within tolerance.
Section C lists fees for services where you had the right to select your own provider. Common items:
Tolerance: 10% in aggregate if you used the providers on the lender's written list. Zero tolerance if you used your own provider and the lender later changed to theirs.
Section D is a sub-total: A + B + C. It is used to build the grand total on page 3.
Section E covers two government-mandated charges:
Tolerance: zero. These amounts should not change from your Loan Estimate unless the purchase price changed.
Section F covers items you pay in advance. Common entries:
These are not fees. They are advance payments for items you will owe regardless of who handles the transaction.
Section G is the lump sum you deposit to fund your impound account before your first monthly escrow payment arrives. It typically covers:
This is not a fee. The money stays in your escrow account and will be used to pay your taxes and insurance when they come due.
Section H is a catch-all for any closing costs that don't fit into the categories above. Common entries include:
Section I is the sub-total: E + F + G + H.
Section J is the grand total: D + I. This is the figure that flows to the "Closing Costs" line on page 1 and the top of page 3.
Page 3 reconciles all the numbers. The top half shows how your cash to close was calculated. The bottom half shows the full transaction summary from both the buyer's and seller's perspectives.
This table walks you through the math from your Loan Estimate to the final cash to close. Each row shows whether the amount changed and by how much. Any "YES" in the "Did this change?" column requires an explanation.
The final row is your cash to close. This is the wire transfer or certified check you will need to provide before or at the closing table.
The Summaries of Transactions section has two columns: one for the borrower, one for the seller. On the borrower side, you can see the sale price, your loan amount, credits applied, and the resulting cash due. On the seller side, you can see the gross sale price, the seller's existing mortgage payoff, and the proceeds they'll receive.
Page 4 contains regulatory disclosure text covering:
This page also contains the escrow account disclosure, showing how your monthly escrow payment was calculated.
Page 5 summarizes the full cost of the loan over its life:
Page 5 also contains the contact information table (loan officer, mortgage broker, settlement agent, real estate agent contacts) and the Confirm Receipt signature line.
Knowing what each section does lets you review your closing disclosure in a systematic order rather than page by page. When you receive your three-day review window, start with Section J on page 2 (the total), then work backward through each fee category to verify each charge makes sense.
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