Finance Charge, APR, Total of Payments, and Amount Financed – Understanding What These Terms Mean and Their Importance

Date recorded: November 13, 2025
Presented by: Mark Burnside, Director, Forvis Mazars LLP

A two-hour webinar focusing on the definitions, calculations, and tolerances.

The Truth-in-Lending Act and Regulation Z requires numerous disclosures, a few of which are considered “material.” Material disclosures are those deemed to be of specific importance and, if a creditor does not provide these correctly, additional consequences may occur, including reimbursement and, if applicable, failure to begin the right of rescission period.

Of the material disclosures, the finance charge and APR are perhaps the most difficult. The regulation does not list all fees that are possible in determining whether a charge is a finance charge or not, and some fees are (or are not) finance charges depending on the transaction. The finance charge, in turn, helps determine the APR, but the calculation of APR is different for closed-end and open-end transactions. It is important that you fully understand this part of Regulation Z as finance charge and APR violations can have an impact on the right of rescission, may result in restitution, and even civil liability.

In addition to finance charges and APR, we will cover the calculation for Total of Payments and Amount Financed, which are important disclosures for closed-end transactions.

This webinar explains what a finance charge is, its effect on the APR, the Total of Payments calculation, and how to calculate the amount financed. We will also address the tolerance rules.

HERE IS WHAT YOU WILL LEARN:

• The “ins” and “outs” of “finance charge” and APR, including:
  • What is considered a finance charge
  • Charges that can be specifically excluded from the finance charge
  • The difference between a finance charge and a prepaid finance charge
  • The difference between the interest rate and the APR
  • How APR calculations can be different
  • The finance charge and APR tolerance for both real estate and non-real estate loans.
• Total of Payments, including the calculation and tolerance for TRID and non-TRID loans
• Amount Financed

FORMAT/INSTRUCTIONAL METHOD: GROUP INTERNET BASED

An online presentation and any additional supplemental materials, as applicable, will serve as the basis. You can stream the audio through your computer or dial-in using a telephone number/PIN. Ample time will be dedicated to taking questions from attendees. Be sure to submit your questions during the webinar, as we are unable to offer telephone or email support after the presentation.