What must be disclosed to borrowers under the Truth in Lending Act?

Under the Truth in Lending Act (TILA), lenders are required to provide borrowers with clear and comprehensive information about the costs associated with borrowing money. One of the key disclosures is the total interest that will be paid over the life of the loan. This disclosure is critical because it allows borrowers to understand the overall financial implications of the loan, enabling them to make informed decisions regarding their mortgage options.

By knowing the total interest, borrowers can compare different loan products effectively, helping them to determine which loan might be the most cost-effective in the long run. This transparency is a fundamental aspect of TILA, which aims to promote informed borrowing decisions and protect consumers from misleading lending practices.

The other choices do not align with the specific disclosure requirements set forth by TILA. For instance, while credit scores can influence lending terms, they are not mandated disclosures under this act. Similarly, promotional offers may pertain to marketing strategies by lenders, but they do not fall within the legislation’s scope of mandated disclosures. Lastly, while the average duration of a mortgage might be relevant information, it is not a specific requirement for disclosure under TILA like the total interest paid over the loan’s life.