A mortgage advertisement says, 'Only 5% down and payments from $2,350 per month.' Under Regulation Z, what additional disclosure set must also appear?
Correct Answer
C) The down payment amount or percentage, the terms of repayment, and the APR, plus a statement if the APR may increase
Stating trigger terms such as a down payment amount or the amount of a payment requires additional disclosures in a closed-end credit advertisement. Regulation Z requires disclosure of the amount or percentage of the down payment, the terms of repayment, and the APR, with a statement if the APR may increase after consummation.
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