Which of the following charges listed on the Loan Estimate cannot be changed?

The transfer taxes listed on the Loan Estimate are considered to be among the charges that cannot be changed. This is because, under the guidelines of the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA), certain fees are categorized as “non-negotiable” due to the fact that they are set by local jurisdictions and are not dependent on the lender or the borrower.

Transfer taxes are imposed by government entities when property ownership transfers from one party to another and are typically fixed based on the sales price of the property or other statutory formulas. Because they are determined by government regulation rather than any negotiations between the borrower and lender, these costs remain constant on the Loan Estimate.

Other charges, such as the initial deposit to the escrow account or homeowners insurance premiums, may have flexibility based on the specific circumstances of the transaction. Therefore, they can be subject to changes or negotiation between the parties involved, which differentiates them from transfer taxes.