Your rights under the Truth in Lending Act (TILA).
The Truth in Lending Act (TILA) promotes informed use of consumer credit by requiring disclosures about loan terms and costs. This notice explains your rights and how HIP helps you understand mortgage lending terms.
Snapshot
Effective: August 1, 2025
Applies to: All mortgage-related calculations and lender connections.
Key Right: Clear disclosure of all loan costs before you commit.
Important: Understanding Loan Costs
TILA requires lenders to provide standardized disclosures so you can compare loan offers. HIP's calculators help you understand these terms, but official disclosures will come from your lender.
Your Rights Under TILA
Federal law ensures you receive clear information about the cost of credit before you commit to a loan.
TILA guarantees you the right to
- Receive clear disclosure of the Annual Percentage Rate (APR), which reflects the true cost of borrowing.
- Know the total finance charge, including all interest and fees over the life of the loan.
- Receive a Loan Estimate within 3 business days of applying for a mortgage.
- Receive a Closing Disclosure at least 3 business days before your loan closes.
- Compare loan offers using standardized disclosure formats.
- Rescind (cancel) certain home loans within 3 business days of closing.
- Receive accurate advertising about credit terms.
Required Disclosures
Lenders must provide specific disclosures at key points in the mortgage process.
Loan Estimate
Within 3 business days of applying, you'll receive a Loan Estimate showing estimated interest rate, monthly payment, closing costs, and other key loan terms.
Closing Disclosure
At least 3 business days before closing, you'll receive a Closing Disclosure with final loan terms and costs. Compare this to your Loan Estimate for any changes.
APR Disclosure
The APR must be prominently disclosed, representing the total cost of credit including interest and certain fees, expressed as a yearly rate.
Payment Schedule
You must receive information about your payment schedule, including the number, amount, and timing of payments required to repay the loan.
Disclosures must include
- Amount financed (the loan amount minus prepaid finance charges)
- Finance charge (the total dollar amount the loan will cost)
- Annual Percentage Rate (APR)
- Total of payments (amount you will have paid when the loan is paid off)
- Payment schedule (number and amounts of payments)
- Whether a late payment fee will be charged and the amount
- Prepayment penalty information, if applicable
- Whether the loan is assumable
Understanding APR
The Annual Percentage Rate is designed to help you compare the true cost of different loan offers.
APR vs. Interest Rate
The interest rate is the cost of borrowing the principal. The APR includes the interest rate plus other costs like origination fees, discount points, and mortgage insurance, giving you a more complete picture of total borrowing costs. A lower APR generally means a less expensive loan.
Costs typically included in APR
- Interest charges
- Mortgage insurance premiums (PMI)
- Origination fees
- Discount points
- Prepaid interest
- Some closing costs charged by the lender
Costs typically NOT included in APR
- Title insurance
- Attorney fees
- Recording fees
- Home inspection fees
- Property taxes and homeowners insurance (though these affect your monthly payment)
How HIP Helps You Compare
HIP's mortgage calculator provides APR estimates based on the loan terms you enter. While these are educational estimates, they help you understand what to look for when comparing actual Loan Estimates from lenders. Always compare official APR disclosures when shopping for a mortgage.
Right to Rescind
For certain home-secured loans, you have the right to cancel within three business days.
The right to rescind applies to
- Home equity loans and lines of credit (HELOCs)
- Refinancing with a different lender
- Most home-secured loans where you pledge your home as collateral
The right to rescind does NOT apply to
- Purchase mortgages (loans to buy your primary home)
- Refinancing with your current lender (if no new money is borrowed)
- Home construction loans
How to Exercise Your Right to Rescind
If you want to cancel a covered loan, you must notify the lender in writing within 3 business days of: (1) closing on the loan, (2) receiving the Truth in Lending disclosure, or (3) receiving notice of your right to rescind—whichever comes last. The lender must then cancel the security interest in your home and return any fees you paid within 20 days.
Credit Advertising Rules
TILA requires advertisements about credit to be accurate and not misleading.
If an ad mentions specific credit terms, it must also disclose
- The APR (and whether it can increase)
- The terms of repayment
- The amount or percentage of the down payment
- Whether the rates or terms are for a limited time
HIP's Commitment
HIP provides educational mortgage calculators and information. When we display rate estimates or payment calculations, we clearly indicate these are for educational purposes and that actual rates will vary based on your credit profile, loan details, and market conditions.
Questions About TILA and Mortgage Disclosures
Resources to help you understand your rights and navigate the lending process.
Contact HIP Support
Email: support@hip.example.com
For lending questions: lending@hip.example.com
California DRE License: #01845929
NMLS ID: #1107134
Federal Resources
Consumer Financial Protection Bureau (CFPB)
Owning a Home Guide →
CFPB Loan Estimate Explainer
Understand Your Loan Estimate →
Related Policies
For more information about your rights and HIP's practices, please review our RESPA Disclosure, FCRA Notice, and Privacy Policy.