What is Truth in Lending?

—Mortgage lenders are required to give you a Truth in Lending (TIL) statement.

The Truth in Lending statement contains information on the annual percentage rate, the finance charge, the amount financed, and the total payments required. For adjustable rate loans, the "total payments" figure is estimated as a "worst case" scenario. The figure represents the payments you would make if your loan adjusted upward to the maximum rate allowed by annual and lifetime caps and then stayed there for the duration of the loan.

The TIL statement may also contain information on security interest, late charges, prepayment provisions, and whether the mortgage is assumable. If you have an adjustable rate loan, it may outline the limits on the adjustments (annual and lifetime caps) and give an example of what your next year's payment might be, depending on interest rates.

To find the loan option that fits you best, contact us to get pre approved. It only takes about 10 minutes, can be done over the phone, and all the information we will need to know you will probably know right off the top of your head.