Northlawn Financial, Inc.

 

Northlawn Financial is required by Federal law to provide a Truth in Lending statement within three days of your intial application. The TIL provides information set forth by Regulation Z, of the Real Estate Settlement Procedures Act. The Disclosure is designed to give you information about the finance costs of your loan.

The Truth in Lending discloses:

APR (Box A)
This should not be confused with your note rate. The Annual Percentage Rate, or APR, is the cost of your credit expressed as an annual rate. Because you may be paying closing costs, also known as prepaid finance charges (origination fee, discount points, mortgage insurance, interest), the APR on the disclosure is often higher than the interest rate on your loan. This APR can be compared to the APR of other loan programs to give you a consistent means of comparing rates and programs.
The APR is computed from the Amount Financed based on what your proposed payments will be on the actual loan amount credited to you at the time the loan is closed.

Finance Charge (Box B)
The Finance Charge is the cost of credit expressed in dollars. It is the total amount of interest calculated at the interest rate over the life of the loan, plus Prepaid Finance Charges and the total amount of any required mortgage insurance charged over the life of the loan.

Amount Financed (Box C)
This should not be confused with your loan (mortgage) amount. The Amount Financed is the amount of credit provided to you or on your behalf, MINUS Prepaid Finance Charges. Prepaid Finance Charges include, but are not limited to, items paid at or before the loan closing, such as loan origination, commitment or discount fees (points), interest, and initial mortgage insurance premium. The Amount Financed represents a NET figure used to allow you to accurately assess the amount of credit actually provided. The Amount Financed is lower than the amount you applied for because it represents a NET figure.

Total of Payments (Box D)
This figure indicates the total amount you will have paid if you make the minimum required payments for the entire term of the loan. This includes principal, interest, and mortgage insurance premium (if required), but does not include payments for real estate taxes or property insurance premiums.

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