The total cost of credit for a mortgage. This is shown on the Truth-in-Lending disclosure, or TIL. This is a dollar amount and includes all charges associated with a home purchase that would not be incurred if the home buyer paid cash.
A finance charge is a fee that represents the cost of borrowing money. It includes interest and fees, as well as any other charges that accrue as a result of borrowing money.
A finance charge is the total cost of credit for a mortgage. This is shown on the Truth-in-Lending disclosure, or TIL. This is a dollar amount and includes all charges associated with a home purchase that would not be incurred if the home buyer paid cash.
The Consumer Financial Protection Bureau (CFPB) says that examples of finance charges include any charges or fees payable directly or indirectly by the consumer and imposed directly or indirectly by the financial institution either as an incident to or as a condition of an extension of consumer credit. The finance charge on a mortgage loan always include any interest charges and often items such as:
Finance charges for a credit card might include interest and annual membership fees.
