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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.

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