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Articles
and F.A.Q.'s
What
disclosure must the lender give you?
For a refinancing,
the lender must give you a written statement of the costs and terms
of the financing before you become legally obligated for the loan,
as required by the Truth in Lending Act. You usually will receive
the information around the time of settlement, although some lenders
provide it earlier. You will want to review this statement carefully
before you sign the loan. The disclosure tells you the APR, finance
charge, amount financed, payment schedule, and other important credit
terms. If you refinance with a different lender, or if you borrow
beyond your unpaid balance with your current lender, you also must
be given the right to rescind the loan. In these loans, you have
the right to rescind or cancel the transaction within three business
days following settlement, receipt of your Truth in Lending disclosures,
or receipt of your cancellation notice, whichever occurs last.
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