Skip to content

State the Rate or Just the APR?

When advertising a fixed rate mortgage with no points, does the rate need to be stated or can we just state the APR?

Answer by Randy Carey:Sec. 226.24 Advertising.

(b) Advertisement of rate of finance charge. If an advertisement states a rate of finance charge, it shall state the rate as an "annual percentage rate," using that term. If the annual percentage rate may be increased after consummation, the advertisement shall state that fact. The advertisement shall not state any other rate, except that a simple annual rate or periodic rate that is applied to an unpaid balance may be stated in conjunction with, but not more conspicuously than, the annual percentage rate.


Answer by Richard Insley:Knowing that mortgage ads are rarely limited to the rate, be sure to include the representative payment example if you mention the number of payments or term.

First published on 1/12/09

First published on 01/12/2009

Filed under: 
Filed under operations as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics