If an advertisem*nt promoting closed-end credit for real estate contains any of the following trigger terms, the three specific disclosures listed at the bottom of this page must also be included in the advertisem*nt. The triggering terms are:
1. The amount of the down payment, expressed either as a percentage or as a dollar amount.
EXAMPLES: "10% down"
"25% down"
"90% financing"
2. The amount of any payment expressed either as a percentage or as a dollar amount.
EXAMPLES: "Monthly payments less than $67"
"Pay 5% each month"
"$9 per month"
3. The number of payments.
EXAMPLES: "36 small payments are all you make"
"48 monthly payments and you're paid up"
4. The period of repayment (the total time required to repay).
EXAMPLES: "Five years to pay"
"36 months to pay"
"4 year loans available"
5. The amount of any finance charge.
EXAMPLES: "Financing costs less than $100"
"Less than $100 interest"
"$100 financing"
The following are examples which do not trigger the required disclosures:
"No down payment"
"18% Annual Percentage Rate"
"Rate loans available here"
"Easy monthly payments"
"Loans available at 5% below our standard annual percentage rate"
"Low down payment accepted"
"Pay weekly"
"Terms to fit your budget"
"Financing available"
Required Disclosures
If any triggering term is used in a closed-end credit advertisem*nt, then the following three disclosures must also be included in that advertisem*nt:
1. The amount or percentage of the down payment;
2. The terms of repayment; and
3. The "annual percentage rate,"using that term spelled out in full. If the annual percentage rate may be increased after consummation of credit transaction, that fact must be disclosed.
