Question:

Where to get a sample of the federal Truth in Lending disclosure statement and how to read it?

Answer:

You can get a sample of the federal Truth in Lending disclosure statement online. The TIL statement is the required disclosure statement as required by the Federal truth-in-Lending Act of 1968.

A TIL form could have been uploaded on our (MortgageQnA) website in the Mortgage Forms section. Otherwise, any online search would get you a sample of the TIL settlement statement.

The APR on the TIL disclosure statement is not the best way to shop for adjustable rate loans.

The Truth-in-Lending mortgage disclosures are required from lenders to allow consumers to compare loan costs. It provides APR (annual percentage rate of the loan) but the APR is calculated differently by different lenders and adjustable rate mortgage (ARM) loans cannot be compared by APR.

Rather, if you need to shop for an ARM loan you need to compare the variable rate disclosure part on the GFE and the TIL disclosure statements. When signing the TIL statement, make sure rates and costs previously disclosed on the GFE (good faith estimate) coincide with TIL numbers.

Bear in mind that TIL disclosures can be edited prior to signing. Do not sign anything before you make sure all numbers and terms coincide with what you have agreed to so far.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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