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What are Amount Financed (as listed on lenders Truth-In-Lending disclosure)?

April 26, 2017disclosure financed lenders truth-in-lending

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What are Amount Financed (as listed on lenders Truth-In-Lending disclosure)?

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The Amount Financed is the loan amount applied for less the prepaid finance charges. Prepaid finance charges can be found on the Good Faith Estimate/Settlement Statement (HUD-1 or 1A). For example if the borrowers note is for $100.000.00 and the Prepaid Finance Charges total $5,000.00, the Amount Financed would be $95,000.00. The Amount Financed is the figure on which the Annual Percentage Rate is based.