FinancingEASY
Under the Truth in Lending Act (TILA), which disclosure is required to help borrowers compare loans?
Correct Answer
B) Annual Percentage Rate (APR)
TILA requires lenders to disclose the Annual Percentage Rate (APR), which includes the interest rate plus other costs of the loan expressed as a yearly rate. This allows borrowers to compare the true cost of different loan products.
Answer Options
A
Loan-to-value ratioB
Annual Percentage Rate (APR)C
Debt-to-income ratioD
Property tax rateAudio Lesson3 min
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Related Topics & Key Terms
Related Topics:
consumer-protection-lawsmortgage-disclosure-requirementsloan-comparison-tools
Key Terms:
Truth in Lending ActTILAAnnual Percentage RateAPRRegulation Z
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