Which document discloses the annual percentage rate for a loan to a borrower?

The annual percentage rate (APR) for a loan is primarily disclosed through the Truth in Lending (TIL) Disclosure Statement. This document is essential because it provides borrowers with clear and comprehensible information regarding the cost of credit over the term of a loan. The TIL Disclosure Statement includes not only the APR but also other important terms such as the total finance charge, the amount financed, and the total of payments. It aims to enable borrowers to compare the costs of different financing options in a standardized manner, ensuring they understand the total cost of borrowing.

Other documents serve different purposes. For example, a Good Faith Estimate provides an estimate of the costs of obtaining a mortgage loan but does not specifically disclose the APR. The Opt-out Notice pertains to the sharing of personal information in financial transactions and is not focused on loan costs. The Promissory note outlines the borrower's promise to repay the loan but typically does not include detailed disclosures about the APR or other lending terms. This context highlights the unique role of the TIL Disclosure Statement in conveying vital loan information to borrowers.