What does the Comparison Table tell the borrower?

The Comparison Table in the context of Truth in Lending (Regulation Z) is designed to provide borrowers with a clear and concise breakdown of key financial details related to their potential loan. Specifically, it gives the borrower a snapshot of what they can expect to pay over a certain period, such as 5 years, including both the total amount paid and how much of that payment goes towards paying off the principal balance of the loan.

By presenting this information, the Comparison Table allows borrowers to make informed decisions by clearly illustrating the costs associated with the loan they are considering. This transparency is particularly important because it helps borrowers understand their financial commitment and compare it against other loans or financial products. It emphasizes the importance of being aware of how much they will ultimately pay in both principal and interest over time, fostering better financial decision-making.

Other choices, while they may relate to aspects of lending, do not accurately reflect the primary information conveyed by the Comparison Table, which is centered on total costs over a specified period and the allocation toward principal versus interest.