What is the minimum number of days before closing that the lender must notify if the APR increases?

The minimum number of days before closing that a lender must notify the borrower if the Annual Percentage Rate (APR) increases is three days. This requirement comes from the Truth in Lending Act (TILA), which mandates that if there is a significant change in terms related to the loan, such as an increase in the APR, the lender must provide a revised disclosure at least three days before the closing date. This is important to ensure that borrowers have enough time to consider the changes and make informed decisions about their loan agreements.

The three-day notification period provides a cushion for borrowers, allowing them to reassess their financial commitments and understand how the change might impact their payment structure and overall loan cost. The intent behind this regulation is to promote transparency and protect consumers from unexpected changes in loan terms that can affect their ability to repay the loan.