Under the TILA, what information must be disclosed to borrowers?

The Truth in Lending Act (TILA) is designed to promote the informed use of consumer credit by requiring disclosures about its terms and costs. Among the critical information that must be disclosed to borrowers under TILA is the Annual Percentage Rate (APR), payment terms, and total costs of the loan.

The APR is essential because it represents the true cost of borrowing, including the interest rate as well as any associated fees, expressed as an annual rate. This allows borrowers to compare the cost of loans more effectively. The payment terms outline when payments are due and the number of payments, providing clarity on the borrower's obligations. The total costs of the loan encompasses all aspects of what the borrower will pay, offering a comprehensive view of the financial commitment.

While other options include important information that might be associated with a mortgage, they are not specifically mandated by TILA for disclosure to borrowers in the same comprehensive context that option B covers. Knowing the total costs and how the loan will work is critical for borrowers in making informed financial decisions.