Mortgage Rule of 3-7-3
For new homebuyers getting a mortgage can be quite daunting. I remind my buyers that they should look at loans just like buying furniture. You are in the driver’s seat. Although we do not seek out loans as often as furniture you can become savvy just like any buying process. Check out 3-4 options, know there is always a deal if you have good credit and become a student of the process. However, it is still a scary process. Below is a requirement that lending institutions must follow. Speak up if you are not receiving your information in a timely manner!
Based on the search results, the "3-7-3" rule in mortgage lending refers to federal (TRID) disclosure timelines designed to protect borrowers:
- 3 Days – Initial Disclosures: Within 3 business days of receiving a completed loan application, the lender must provide a Loan Estimate (LE).
- 7 Days – Waiting Period: A lender must wait at least 7 business days after sending the initial Loan Estimate before closing the loan.
- 3 Days – Closing Disclosure: The lender must deliver the final Closing Disclosure (CD) at least 3 business days before closing.
Key Aspects of the 3-7-3 Rule:
- Purpose: It is designed to prevent last-minute surprises, such as hidden fees or interest rate changes, before you sign the final paperwork.
- Applicability: Applies to most consumer mortgages, including refinances.
- Significant Changes: If the APR changes by more than 1/8% (0.125%) for fixed-rate or 1/4% (0.25%) for adjustable-rate, a new 3-day waiting period is triggered.
Other "3" Mortgage Concepts:
- 3% Down Payment: Specific programs (like Conventional 97) allow for a 3% down payment.
- 3-3-3 Rule: A financial guideline recommending 3 months of emergency savings, 3 months of mortgage payments in reserve, and comparing at least 3 properties.
- 3.73% Rate: In late 2019, 30-year fixed mortgage rates averaged around 3.73%. Note: As of early 2026, rates are significantly higher, with 73% of borrowers holding rates below 5%.
