Final answer:
Borrowers are required to be given three business days to review the Closing Disclosure before closing on a loan, as mandated by the CFPB under TILA and RESPA's TRID rule.
Step-by-step explanation:
A prospective borrower must be given at least three business days to review the Closing Disclosure before the loan closing. This time frame is mandated by the Consumer Financial Protection Bureau (CFPB) under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) Integrated Disclosure Rule, often referred to as the TRID rule. This review period allows borrowers to understand and confirm the terms of their mortgage, which might span over 15 or 30 years, and to ensure there are no surprises at closing. Choosing between a 15-year and a 30-year mortgage term involves weighing the pros and cons including factors like the total interest paid over the life of the loan and the monthly payment amount. An online calculator tool is invaluable in comparing these options by detailing the financial implications of each term length.