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.
Recommended Articles from InvestorGuide.com
Investing Tips
Purchasing a CarWhen buying a car, think carefully about how much car you can afford and how much of a loan you need. The dollar amount of your loan largely will be determined by the sales price of the vehicle minus ... Read more
Additional Tip(s)
Related Videos
Featured Advertiser
