Under the Truth in Lending Act (TILA), which of the following must be disclosed to the borrower?
Correct Answer
B) Annual Percentage Rate (APR)
The Truth in Lending Act (TILA) requires lenders to disclose the Annual Percentage Rate (APR), finance charges, total amount financed, and total of payments to borrowers. The APR is the most prominent required disclosure, allowing borrowers to compare the true cost of credit across lenders.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
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