Helping You Understand the Mortgage Process


- Info/Resources -
Loan Jargon
Loan Programs
Loan Documents
Closing Costs
Credit Score
Property Taxes
Fixed vs. ARM
100% Financing
Stated Income
Ways of Holding Title
Real Estate News

- Tools/Interactive -
Contact Info

 - Personal Info -
Your Loan Status


Truth-In-Lending Statement

A Truth-In-Lending disclosure is designed to give you information about the costs of your loan.

The Annual Percentage Rate - the cost of your credit expressed as an annual rate.  Because you may be paying loan discount "points" and other "prepaid" finance charges at closing, the APR disclosed is often higher than the interest rate on your loan.

The Finance Charge - the total amount of interest calculated at the given interest rate over the life of the loan, Prepaid Finance Charges and the total amount of any required mortgage insurance.

The Amount Financed - the loan amount applied for, minus Prepaid Finance Charge which include items paid at or before settlement, such as points and initial mortgage insurance premiums.  If you applied for $50,000 and Prepaid Finance Charges totaled $2,000, the Amount Financed would be $48,0000.

The Total of Payments - the total amount you will have paid upon meeting the minimum required payments over the life of the loan. This includes principle, interest and mortgage insurance premiums, but does not include payments for real estate taxes or property insurance premiums.

Back to Understanding Loan Documents


detsmall.jpg (1123 bytes)Looking for a specific mortgage term?   Click Here to search our Jargon dictionary.

Looking to Advertise in this location?  Contact Us for rates

2002-2004 LoanJargon.com | Contact Us