Finance
The Truth in Lending Act (TILA) requires New Jersey lenders to disclose the Annual Percentage Rate (APR), which reflects:
AOnly the interest rate on the loan
BThe true cost of credit including interest, fees, and other charges expressed as a yearly rate✓ Correct
CThe lender's profit margin
DThe index rate for adjustable-rate mortgages only
Explanation
TILA requires lenders to disclose the APR, which incorporates the interest rate plus most fees and charges (points, origination fees) to give borrowers a standardized measure of the total cost of credit. This allows comparison shopping among different loan offers.
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