What does the Truth in Lending Act have to do with home loans?
The main purpose of the Truth in Lending Act is to assure the meaningful disclosure of consumer credit and lease terms, including those in advertisements, so that consumers can easily compare terms and shop wisely for credit. It requires creditors to provide the consumer information on the cost of the credit, or finance charge, as a dollar amount and as an annual percentage rate (the “APR”). The APR includes not only the interest rate, but also all the fees and closing costs that a consumer would pay for the loan. The act is also known as Title I of the Consumer Credit Protection Act. Return to index . . .
