Truth in Lending (TIL) (TIL)
Direct definition
The federal law requiring standardized disclosure of consumer credit terms, including APR and total finance charge.
Written by the Vabasso Mortgage Editorial Team · Reviewed against agency and federal sources · Read our editorial policy for how we research and review mortgage content
Plain-English explanation
TIL is now largely delivered via TRID's Loan Estimate and Closing Disclosure. It exists to make credit terms comparable and transparent.
Why it matters
TIL disclosures are how you compare offers accurately, not just on the note rate.
Where you may see it
- Closing Disclosure
- Loan Estimate
- Truth in Lending disclosure
A real-world example
Your Loan Estimate discloses APR, finance charge, and total of payments under TIL requirements.
Educational and illustrative only
A common misunderstanding
Truth in Lending disclosures don't replace the Closing Disclosure or Loan Estimate — the required information is now largely incorporated into those TRID forms.
Ask Vabasso AI
This glossary provides general educational information. Mortgage terminology, qualification methods, forms, timelines, fees, program rules, and legal meanings may vary by lender, investor, loan program, property, occupancy, state, and transaction. Definitions do not represent loan approval, legal advice, tax advice, or a commitment to lend.
- Author
- Vabasso Mortgage Editorial Team
- Reviewed by
- Vabasso Mortgage Licensed Advisory Team
- Last reviewed
- July 30, 2026