New York Real Estate Salesperson Exam 2025 - Complete Practice Guide

Question: 1 / 400

What does Regulation Z require lenders to disclose about loans?

Property taxes

Loan terms and conditions

Total cost of the loan

Annual percentage rate

Regulation Z, which implements the Truth in Lending Act, requires lenders to disclose the annual percentage rate (APR) associated with a loan. The APR is crucial as it provides borrowers with a clear understanding of the true cost of borrowing, taking into account not just the interest rate but also any fees or additional costs associated with the loan. This disclosure helps borrowers compare different financing options more effectively.

While the total cost of the loan, loan terms and conditions, and property taxes are important elements of the borrowing process, they are not specifically mandated by Regulation Z for disclosure in the same way that the APR is. Lenders may provide information about these other factors, but the primary focus of Regulation Z is ensuring borrowers are aware of the APR, promoting transparency and informed decision-making regarding loan choices.

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