TILA Mortgage Loan Officer Test 2025 – 400 Free Practice Questions to Pass the Exam

The "total of payments" in TILA disclosures refers to the sum of all required payments over the life of the loan. This calculation includes not just the principal amount that the borrower will repay but also the interest and any other fees that may be included in the repayment obligations. By providing this comprehensive total, TILA ensures that borrowers have a clear understanding of the overall financial commitment they are entering into when taking out a loan. This is crucial for informed decision-making, as it allows borrowers to compare different loan options based on their total cost rather than just the initial amounts.

In contrast, the other options do not accurately represent what the "total of payments" encompasses. For example, it is not limited to a one-time payment for closing, it does not include only the principal payments, and it certainly does not merely reflect the amount lent to the borrower. Each of these would provide a misleading view of the financial obligations tied to the loan.