Define TIL, what does it stand for? Can anyone explain the APR on a TIL ?
TIL stood for truth in lending, the name of a form that used to be required by the federal government for mortgages. It’s been replaced by the closing disclosure.
APR stands for annual percentage rate. It’s sort of like the EPA fuel mileage rating for a car; it’s a somewhat artificial figure that’s supposed to make it easier for borrowers to compare different loans. Loans have a mixture of interest, other payments that are spread over time, and up-front fees. The calculation for APR spreads all these expenses over time to try to make the loans comparable.
Are you taking a test? You have asked 2 questions that sound like test questions - also will add your question about the TIL and APR is antiquated as there is no longer a TIL.
Oshmalosh1, study your NSA guide. TILA was subsumed into the CD in October, 2015.
APR is still hanging in there, Linda. Last page of the CD.