What must lenders disclose to borrowers under New Jersey regulations?

Lenders are required to disclose final loan terms and costs through the Closing Disclosure under New Jersey regulations to ensure transparency and provide borrowers with a comprehensive understanding of their loan. The Closing Disclosure includes detailed information such as the loan amount, interest rate, monthly payment, and any fees or costs associated with the transaction. This regulation is designed to prevent misunderstandings and protect consumers by ensuring they are fully informed before finalizing their mortgage agreements.

Providing only the annual percentage rate or basic information without details would not be sufficient for borrowers to make informed decisions, as these options lack the comprehensive nature of the Closing Disclosure. Simply disclosing the principal amount of the loan would not convey the full scope of the financial obligations the borrower is undertaking. Thus, the requirement for a detailed Closing Disclosure ensures that all aspects of the loan agreement are communicated effectively.