Which key information must be included in a Closing Disclosure?

Which key information must be included in a Closing Disclosure?

• A. Borrower's credit score
• B. Loan amount and interest rate
• C. Lender's marketing strategy
• D. Cost of home insurance

Answer: (B)

The inclusion of the loan amount and interest rate in the Closing Disclosure is essential as it directly impacts the borrower’s costs and payment obligations under the mortgage agreement. The Closing Disclosure is designed to provide detailed information about the mortgage transaction, ensuring that borrowers understand their financial commitments before finalizing the loan. This document outlines the key elements of the loan, including how much the borrower is borrowing and at what interest rate, which are crucial for calculating monthly payments and total repayment amounts over the life of the loan. While other aspects of the transaction may be relevant, like the cost of home insurance, they do not encompass the core details that define the borrowing terms, which are the primary focus of the Closing Disclosure. Including the borrower's credit score or the lender's marketing strategy is not standard practice, as those elements do not pertain to the specific financial obligations that the Closing Disclosure aims to clarify.

The inclusion of the loan amount and interest rate in the Closing Disclosure is essential as it directly impacts the borrower’s costs and payment obligations under the mortgage agreement. The Closing Disclosure is designed to provide detailed information about the mortgage transaction, ensuring that borrowers understand their financial commitments before finalizing the loan. This document outlines the key elements of the loan, including how much the borrower is borrowing and at what interest rate, which are crucial for calculating monthly payments and total repayment amounts over the life of the loan.

While other aspects of the transaction may be relevant, like the cost of home insurance, they do not encompass the core details that define the borrowing terms, which are the primary focus of the Closing Disclosure. Including the borrower's credit score or the lender's marketing strategy is not standard practice, as those elements do not pertain to the specific financial obligations that the Closing Disclosure aims to clarify.