Truth in Lending. A federally required disclosure to indicate to the borrower the APR and total costs over the life of the loan, prepayment penalties, late fees and charges, assumption, hazard insurance, and collateralization of the loan.
Truth in Lending. The name given to the federal statues and regulations (Regulation Z) which are designed primarily to insure that prospective Borrowers of credit received credit and cost information before concluding a loan transaction.
The Truth in Lending Disclouseer Statement is a disclosre required by the government and is supposed to allow the borrower(s) to compare similar loans with differing interest rates and closing cost. The key to this comparison is a figure called the Annual Percentage Rate(APR). The APR is extrapolated from three figures-Finance Charge, Amount Financed and Total of Payments.