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Example Truth-in-Lending Statement

Example Truth-in-Lending Statement

Please note that the Truth-in-Lending Statement (TIL) was replaced by the Loan Estimate (LE) effective October 3rd, 2015 and is no longer used in the mortgage process. We provide the Truth-in-Lending Statement example below for your reference.


The Truth-in-Lending Statement is a standardized form provided by the lender at the time the borrower submits a loan application.  The document contains key mortgage information such as the Annual Percentage Rate (APR), Finance Charge and the Total of Payments you will make over the mortgage term including both interest and principal. The APR, one of the more important items on the Truth-in-Lending Statement, is relatively complicated to calculate, but in short, represents what the interest rate would be if it included lender costs and fees. It is important to compare the APR with your interest rate. If the APR is close to your interest rate then you know that the lender costs are relatively small. If the APR is significantly higher than your interest rate then you know that the lender costs are relatively high and you may want to negotiate lower fees or look for a different lender.

The Finance Charge shows total scheduled interest payments over the term of the mortgage plus non-recurring lender costs.  The Truth-in-Lending Statement also indicates if your mortgage has a Demand Feature (also known as a balloon payment), a Variable Rate Feature (your interest rate could change over the term of the mortgage) and a Prepayment Penalty (a fee charged if you pay-off your mortgage before a specified time period) among other mortgage features.

The example document below shows a 30 year fixed rate mortgage with a 4.250% interest rate and an APR of 4.339%. Because the APR is relatively close to the interest rate, you can determine that the lender costs are relatively small. This example mortgage does not have a Demand Feature (no balloon payment), a Variable Rate Feature (because it is a fixed rate mortgage) or a Prepayment Penalty (which are relatively uncommon for standard mortgages).  Please note that this is an example Truth-in-Lending Statement that should be used for informational purposes only.

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Rate data provided by RateUpdate.com. Displayed by ICB, a division of Mortgage Research Center, NMLS #1907, Equal Housing Opportunity. Payments do not include taxes, insurance premiums or private mortgage insurance if applicable. Actual payments will be greater with taxes and insurance included. Read through our lender table disclaimer for more information on rates and product details.
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