Which document outlines the total cost of the loan including interest and fees?

The Truth in Lending disclosure is the correct document that outlines the total cost of the loan, including interest and fees. This document is required by federal law under the Truth in Lending Act, which aims to promote the informed use of consumer credit. It provides borrowers with essential information about the terms and costs associated with borrowing, allowing them to understand the true financial implications of the loan.

The Truth in Lending disclosure specifies the annual percentage rate (APR), the total finance charge, the total amount financed, and the total payments, making it easier for borrowers to compare different lending offers. This transparency is crucial for consumers, as it helps them make informed decisions about their borrowing options and understand the overall costs associated with the loan over time.

The Loan Estimate, while also important, is specifically used for mortgage loans to provide borrowers with an estimate of their loan terms and costs, but it is not the document that encompasses all fees and costs related to the loan as extensively as the Truth in Lending disclosure does. As for the Good Faith Estimate, this was a form that provided similar information but has largely been replaced by the Loan Estimate for most loans. A Disbursement Agreement typically details the conditions under which loan funds will be released, rather than providing a comprehensive breakdown of