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What is the Truth In Lending (TIL) Disclosure?
The TIL informs you of the total cost of financing. It provides you with:
- The total cost of financing after all payments on the loan have been made, assuming you do not pay off the loan prior to the original term
- The cost of your initial monthly payments
- The annual percentage rate (APR)
- An itemization of the amount financed – this section breaks down the estimates on the Good Faith Estimateinto “total prepaid finance charges” and “total amount paid to others”. You will note that the “total amount financed” is the loan amount minus the total prepaid finance charges. The prepaid finance charges indicate all costs that are paid out on your behalf by Sterling National Mortgage. At closing, you will be required to pay these costs. Please note, your actual amount of the loan is the amount you applied for and is on your commitment.
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