What is a key item that must be included in the closing disclosure?

The final interest rate and closing costs are critical components of the closing disclosure because they provide transparency to the borrower regarding the financial details of the mortgage transaction. This document is designed to ensure that the borrower has a clear understanding of their loan terms and the associated costs before finalizing the transaction.

During the closing process, the closing disclosure outlines the final terms of the loan, including how much the borrower will pay in interest and what the total closing costs will be. This helps borrowers to compare the terms and costs with those provided in the loan estimate they received earlier in the process. Having this information readily available ensures that borrowers can make informed decisions and prepare for their financial obligations.

Including the final interest rate is particularly important, as it directly affects the monthly mortgage payments and the overall cost of the loan over its term. The closing costs, which can include fees for services such as title insurance, appraisal, and other administrative costs, are also crucial for the borrower to know, as they may affect the total cash needed at closing.

The other options, while relevant in some contexts, do not hold the same critical importance as the finalized interest rate and closing costs for the purpose of the closing disclosure. For instance, details like the lender's license number or the borrow