What does the Total Amount Financed and APR mean in on the Truth-In-Lending Disclosure?
The amount financed is the mortgage amount applied for MINUS prepaid finance charges and any required deposit balance. Prepaid Finance charges include the items such as loan origination fees, commitment or placement fees (points), adjusted interest, and initial mortgage insurance premium. The amount financed represents a NET figure used to allow you to accurately assess the amount of credit actually provided. The APR is the cost of consumer credit as a percentage spread out over the term of the loan. It includes any charges paid directly or indirectly by the consumer.
