amount financed

Definition

In terms of the Truth in Lending Act, the amount financed is the entire loan amount minus all lender fees, which are paid at closing (known as "prepaid finance charges"). For example, if someone borrows a loan of $90,000 and he or she pays the lender $3,000 in fees, the amount financed ends up being $87,000.

Use amount financed in a sentence

You should try to make sure that you know exactly what the amount financed was so you know how much you owe.

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I wanted to know the amount financed and everyone was interested because it was important to the financial status of our company.

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Muriel couldn't remember what the exact lender fees were for her latest loan and was unable to answer truthfully when the attorneys asked her to tell them the actual amount financed.

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