What information must be included in the initial disclosure to borrowers?

The initial disclosure to borrowers is designed to provide a comprehensive overview of the essential terms and costs associated with a mortgage loan. Including the loan amount, interest rate, annual percentage rate (APR), and total loan costs is crucial, as these elements give borrowers a clear understanding of their financial commitment and the overall expense of the loan. The loan amount reflects how much money is being borrowed, the interest rate indicates the cost of borrowing that money, the APR provides a broader perspective on the total cost of the loan including interest and fees, and the total loan costs summarize all expenses that the borrower will incur throughout the life of the loan.

This comprehensive information ensures that borrowers are adequately informed and can make educated decisions regarding their mortgage options. It also aligns with regulatory requirements intended to protect consumers by ensuring transparency in the lending process. While other aspects like monthly payment amounts, escrow requirements, and other details are important, they do not replace the fundamental information included in the initial disclosure that is specified in option A.