Truth in Lending Act
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
The Truth in Lending Act is a federal law that requires lenders to disclose the full cost of credit, including the APR, finance charges, and total payments, so borrowers can compare offers.
What Truth in Lending Act means
Passed in 1968, TILA standardized how lenders present loan costs and gave borrowers protections like the right of rescission on refinances. Its disclosures now flow through the Loan Estimate and Closing Disclosure under TRID.
Florida example
Under TILA, a Florida lender disclosed a 6.78% APR on a loan with a 6.5% note rate, showing the buyer how points and fees raised the true borrowing cost.
What it is
The Truth in Lending Act requires lenders to disclose the true cost of a loan clearly. It gave us the APR and standard disclosures.
The goal is honest, comparable loan terms.
Why it matters
This law lets you compare loans fairly and see the full cost of borrowing. It protects you from hidden charges.
We keep every cost transparent. Apply now and we will show you the honest numbers.