Final answer:
The fee that can change without restriction under the Loan Estimate form is D) Homeowner's insurance. An escrow account is typically used to manage homeowner's insurance and property. Tax payments, making it part of the monthly mortgage payment.
Step-by-step explanation:
Under the Loan Estimate form, certain fees can change without restriction, which means the final costs may vary from the original estimate given when the loan is first applied for. These fees associated with a mortgage loan may include various taxes, insurance, and interest. However, the specific fee that may change without restriction according to the question provided is D) Homeowner's insurance.
Escrow accounts are commonly used in real estate transactions to manage and disburse funds for property taxes and homeowner's insurance. Within an escrow arrangement, rather than paying separate bills for homeowner's insurance and property taxes, homeowners can make monthly payments as part of their mortgage payment, and the escrow account ensures that these expenses are paid to the appropriate parties when due.