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The Truth about the Truth in Lending Act

Debbie Wilson
LoanBiz Columnist

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Article Rating , 4 out of 5 based on 1 votes

Acquiring a mortgage may seem like a daunting task, but with the help of the Truth in Lending Act, you can secure the right loan and still have peace of mind. Learn what the Truth in Lending Act can do for you.

Truth in Lending Act Facts

The main purpose of the Truth in Lending Act is to insure and promote the informed use of consumer credit and lease terms. The act requires meaningful disclosures that allow you to compare terms and costs, which in turn, give you the opportunity to shop wisely and obtain the best mortgage you can qualify for. Prior to the Act, lending institutions may have been able to more easily distort facts, making mortgage loans and other consumer credit appear more attractive than actual costs and terms revealed.

Consumer Responsibilities

While the Truth in Lending Act requires the mortgage lending institution to make the consumer aware of the total amount financed, amount of interest that will be paid, and any additional finance charges involved, it is important to take control of your rights. If you are considering a new home mortgage, or considering refinancing your current loan, it is a good idea to educate yourself as much as possible about your rights and responsibilities. That means you should research loan types and terms. Find a reputable mortgage lending institution that can help you get a solid, honest deal on your loan. The right lender will understand that a mortgage is a big decision and will help answer your questions and fully explain all terms and offerings of your loan options.

When it comes to credit protection, the Truth in Lending Act can be a big part of your mortgage solution. Don't give up, just get the facts, know your rights, and find your perfect loan.

Source
Lending Universe

About the Author
Debbie Wilson owns and operates a lakeside resort. Her previous experience includes profitability consulting for a national healthcare company. Debbie holds a B.A. in Business Management with a minor in Physical Education.

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