Which item must be included in a closing statement provided to the borrower?

In a closing statement provided to the borrower, it is essential to include the total amount of interest disbursed, the total amount of the loan, and the number of installments. Each of these elements plays a critical role in ensuring that the borrower has a clear understanding of the financial obligations they are entering into.

Including the total amount of interest disbursed informs the borrower of the cost associated with borrowing the money over the life of the loan. This transparency helps borrowers make informed decisions and manage their financial planning appropriately.

The total amount of the loan is fundamental, as it represents the principal amount borrowed. This figure is essential for understanding how much debt the borrower is taking on and will be repaid over time.

Lastly, detailing the number of installments provides clarity on the payment structure. It helps borrowers understand how many payments they will need to make and the duration of the loan repayment period.

By encompassing all these aspects, the closing statement ensures thorough communication of the loan terms and solidifies the borrower’s understanding of their financial commitments. Such detailed disclosures are mandated to foster transparency and protect consumer rights in residential mortgage transactions.