Definition
Truth-in-Lending disclosures clearly explain loan terms, costs, and key information in standardized formats required by TILA. Loan Estimates and Closing Disclosures are specific disclosures helping you understand obligations and compare offers.
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TILA requires lenders to disclose the finance charge, APR, payment schedule, and other key terms in a clear, standardized format. The Loan Estimate and Closing Disclosure are specific TILA disclosures. These disclosures help borrowers compare loan offers and understand their obligations.
Pro Tip
Carefully read all TILA disclosures to understand the true cost of borrowing and verify all terms match your expectations.
Example
The Truth-in-Lending disclosure clearly shows the APR (6.25%), finance charge ($215,000), and monthly payment ($1,896) for a 30-year mortgage.