What does "APR" stand for in the context of mortgage lending as required by TILA?

In the context of mortgage lending and the Truth in Lending Act (TILA), "APR" stands for Annual Percentage Rate. APR is a critical financial metric because it represents the total cost of borrowing over the life of a loan expressed as an annualized rate. This rate encompasses the interest charged for the loan as well as any additional fees or costs associated with the loan, allowing borrowers to compare different loan offers more effectively. By law, lenders are required to disclose the APR to borrowers, ensuring transparency and helping consumers make informed decisions when evaluating mortgage options.

The other potential meanings, such as Account Payment Ratio or Alternative Payment Rate, do not apply to the financial disclosure requirements set forth by TILA. Understanding APR helps borrowers grasp the full financial implications of their mortgage and engage more knowledgeably with the lending process.