Things You'll Need:
- Truth in Lending disclosure provided by lender
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Step 1
Top Section Of The Truth In LendingThe top of the Truth in Lending
At the top of your Truth in Lending form, you'll find four boxes.
The Annual Percentage Rate box displays your APR. Remember your APR is not the interest rate of your note. It is a percentage rate that is calculated using the pre-paid closing costs associated with your mortgage.
The Finance Charge is the amount of interest paid over the life of the loan.
The Amount Financed is the original loan amount plus the pre-paid finance charges.
The Total of Payments is the total amount paid over the life of the loan using the original payment schedule. -
Step 2
Payment Schedule On Truth In LendingPayment Schedule
The Truth In Lending disclosure also provides a payment schedule. When properly completed by your lender, this section will show you how and when your payments are scheduled to change. The picture shows a 30 yr fixed mortgage. If it were an ARM, the payment would change when adjustment periods pertain. -
Step 3
Loan Features, Pre-Payment, Insurance Truth In LendingLoan Features, Pre-Payment, Insurance
In this section you will find out if the mortgage you applied for has a demand feature (balloon mortgage), variable rate feature (adjustable rate), the insurance requirements involved.
It will also tell you what you are putting up for collateral, the filing fees, whether there is a late payment charge, whether there is a pre payment charge and whether your mortgage is assumable.
Comments
CaseyCarlton said
on 3/31/2009 Thank you for sharing the facts on truth in lending. 5 stars and a recommend