Can anyone answer this question?

Define TIL, what does it stand for? 2.) Please explain the APR on a TIL as you would to a person signing.

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Trying to pass an outdated test? TILs have been replaced by CDs.

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TIL, or Truth In Lending is still used on certain types of loans. The APR is the Annual Percentage Rate. The lender takes certain fees paid for the loan and adds it to all the interest the borrower would pay, if they made every payment, on time, for the life of the loan, and divides it by the number of years of the loan, typically 30 years. They translate that into an interest rate, which is usually higher than the monthly interest rate, especially if they have a lot of loan fees. This lets the borrower know exactly how much they are paying to get the loan.

"The integrated mortgage disclosures (CD) apply to most consumer mortgages except:

Home-equity lines of credit
Reverse mortgages
Mortgages secured by a mobile home or dwelling not attached to land
No-interest second mortgage made for down payment assistance, energy efficiency or foreclosure avoidance
Loans made by a creditor who makes five or fewer mortgages in a year"

The majority of the loans we see are Refi or purchase FHA or Conventional loans and will not have a TIL or HUD-1, they will have the CD, or closing disclosure, which replaced them for these types of loans, a few years ago.

I hope that makes sense. Please let me know if it doesn’t.


Hi Frank,
I’m a little late answering this, but I would say;
“the APR reflects the total costs of the loan, including the interest rate and other prepaid costs, on an annual basis”.

Or, “the APR combines the interest rate plus the costs of the loan, to reflect the total yearly rate”.

If you’re ever loan shopping, it’s a great way to tell who is charging a lot of fees! I used to be a loan officer and have explained it many ways, but I feel this is pretty basic.