If any triggering terms are used in an ad, which of the following must be present?

In advertising for loans, the presence of triggering terms necessitates the inclusion of the Annual Percentage Rate (APR). This requirement is established under Regulation Z of the Truth in Lending Act. Triggering terms such as "low interest rate," "monthly payment," or "down payment" imply specific financing details that need further clarification to ensure consumers receive a clear understanding of the financial commitment involved.

When an ad contains triggering terms, the APR must be disclosed because it provides consumers with a comprehensive view of the loan costs over the duration of the loan, making comparisons easier and facilitating informed decision-making. This transparency helps consumers understand the true cost of borrowing, as the APR encompasses not just the interest rate, but also other fees and costs associated with the loan, expressed as an annualized percentage.

In contrast, while down payment amounts, terms of repayment, and total closing costs are important components of the loan, the legal requirement specifically highlights the APR as a necessary disclosure when triggering terms are present in advertisements.