1
ANNUAL PERCENTAGE RATE:
The APR is not the same as your interest rate.
Because the APR includes items in
addition to interest, it is higher than the note
rate. It is a combination of the amount
of interest to be paid over the life of the
loan, together with the prepaid finance charges
computed as an annual rate. |
5
PREPAYMENT:
If the first box is checked, your loan has a
prepayment penalty. This means that a fee may be
charged to you if you pay off your loan before
it is due.
The second box
indicates that if you pay the loan off early you
will not receive a refund for interest that you
paid in the previous years. You
will not owe any future interest, but will not
be refunded any interest from the previous
years. |
7
ASSUMPTION:
Your lender will
determine if the loan is assumable (transferable
with no change in rate or conditions) by a third
party. Very few modern mortgages are
assumable. |
|
TRUTH-IN-LENDING DISCLOSURE STATEMENT
(This is Neither a
Contract nor a Commitment to lend)
Applicants: John Smith
Property Address: 123 American Way
Atlanta, GA 30005
Application No: |
ANNUAL
PERCENTAGE RATE
3.591%
1
|
FINANCE CHARGE
$84,507.88
2
|
AMOUNT
FINANCED
$289,178.74
3
|
Total
of Payments, The amount you will
have paid after making all payments
as scheduled
$373,686.31 |
Interest Rate and Payment Summary |
Interest Rate: 3.25%
Principle + Interest Payment:
2042.66
Est Tax: 475.20
Total Monthly Payment: 2517.86 |
[ ]
DEMAND FEATURE: This loan
transaction has a demand feature.
[ ] REQUIRED DEPOSIT: The annual
percentage rate does not take into
account your required deposit.
[ ] VARIABLE RATE FEATURE: Your loan
contains a variable rate feature.
Disclosures about the variable rate
feature have been provided to you
earlier. |
SECURITY INTEREST:
You are giving a security interest
in:
[ X ] the goods or property being
purchased.
FILING OR RECORDING FEES $65
LATE CHARGE: If a payment is more
than 15 days late, you will be
charged $50 / 5 % of the principal
and interest past due.
PREPAYMENT: If you pay off your loan
early, you
[ ] may [ X ] will not have to pay a
penalty 5
[ ] may [ X ] will not be entitled
to a refund of part of the finance
charge.
6
INSURANCE: Credit
life, accident health or loss of
income insurance is not required in
connection with this loan. This loan
transaction requires the following
property insurance:
[x ] Hazard Insurance [x ] Flood
Insurance [ ] Private Mortgage
Insurance
Borrower(s) may obtain property
insurance through any person of
his/her choice provided said carrier
meets the requirements of the
lender.
7
ASSUMPTION: If this loan is to
purchase and is secured by your
principal dwelling, someone buying
your principle dwelling,
[ ]may [ ]may, subject to conditions
[ x] may not assume the remainder of
your loan on the original terms.
See your contract documents for
additional information regarding
nonpayment, default, right to
accelerate the maturity of the
obligation, prepayment rebates and
penalties, and the lender's policy
regarding assumption of the
obligation.
[
] check boxes where applicable
[x ] all dates and numerical
disclosures except late payment
disclosures are estimates |
|
|
2
FINANCE CHARGE:
Represents the total dollar amount you will have
to pay over the life of the loan- i.e., the cost
of the loan to you. It is a combination of the
amount of interest paid over the life of the
loan plus any/all mortgage insurance premiums,
plus the prepaid finance charges. |
3
AMOUNT FINANCED:
The amount financed is different will always be
different from what you borrowed. The
amount financed represents your new mortgage
amount minus points and certain closing fees as
shown in your Good Faith Estimate of Closing
Costs. |
6
DISCLOSURE:
States that if you pay the loan off early, you
will not be entitled to a refund of part of the
finance charge. This means that you will be
charged interest for the period of time in which
you are using the money loaned to you. Prepaid
finance charges and interest already paid are
not refundable. In other words, you only
pay interest for the time the loan is still
outstanding. |
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