What are trigger terms in mortgage?

Asked by: Mrs. Opal Balistreri DVM  |  Last update: March 11, 2026
Score: 4.8/5 (67 votes)

It is the presence of a specific word or phrase that would “trigger” the advertisement to include additional disclosures to the consumer. The specific triggering term and related requirements are governed by the Truth in Lending Act (for loan-related products) or the Truth in Savings Act (for deposit-related products).

What are examples of triggering terms?

Examples of Triggering Terms
  • The amount of a down payment expressed as a percentage or a dollar amount (example: "5% down" or "80% financing")
  • The amount of any payment expressed as a percentage or a dollar amount (example: "$15 per month" or "monthly payments of under $100")

What is trigger rate in mortgage?

The trigger rate is the rate at which the regular mortgage payments no longer covers the accrued interest. Interest rates for the variable rate has increased so much that the entire payment is dedicated towards the interest and nothing towards the principal.

What are trigger words in TILA?

A triggering term is a word or phrase that legally requires one or more disclosures when used in advertising. Triggering terms are defined by the Truth in Lending Act (TILA) and are designed to protect consumers from predatory lending practices.

What is a trigger term in mortgage?

It is the presence of a specific word or phrase that would “trigger” the advertisement to include additional disclosures to the consumer. The specific triggering term and related requirements are governed by the Truth in Lending Act (for loan-related products) or the Truth in Savings Act (for deposit-related products).

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22 related questions found

What would be considered a trigger item under Regulation Z?

Phrases or figures used in advertising that will "trigger" other Regulation Z disclosures. The following are trigger terms: the amount or percentage of any down payment, the payment period, the monthly payment, and the amount of the finance charge.

Which of the following would not be considered a trigger term?

According to Regulation Z, the only term provided that is not a trigger term is APR (Annual Percentage Rate). Regulation Z, part of the Truth in Lending Act, requires lenders to disclose key loan terms to potential borrowers.

Is assumable mortgage a triggering term?

In mortgage advertising, triggering terms influence consumer decisions by indicating specific financing details. The term 'Assumable Mortgage' does not provide specific conditions like the others do. Hence, it is not considered a triggering term compared to the others in the list.

What is the trigger point in a mortgage?

A trigger point on a mortgage occurs when the balance owing on the mortgage is higher than the original mortgage amount. At this point, you must either increase your payment or pay down the over-extended balance with a prepayment.

What is trigger in real estate?

Definition: used in advertising, include the following – the amount or percentage of down payment, number of payments, period (term) of repayment, amount of any payment, and the amount of any finance charges. Pronunciation: \ˈtri-g(ə-)riŋ\

What is a payment trigger?

Payment Trigger means the occurrence of a Change in Control during the term of this Agreement coincident with or followed at any time before the end of the 12th month immediately following the month in which the Change in Control occurred, by the termination of the Executive's employment with the Corporation or a ...

Is APR a trigger term?

Statements of the annual percentage rate or statements that there is no particular charge for credit (such as “no closing costs”) are not triggering terms under this paragraph.

What are the trigger words usually include?

Here's a list of trigger words that create a sense of urgency:
  • Hurry.
  • Rush.
  • Snap.
  • Instantly.
  • Direct.
  • Quick.
  • Accelerate.
  • Swift.

What are examples of trigger terms?

The triggering terms are:
  • The amount of the down payment, expressed either as a percentage or as a dollar amount. ...
  • The amount of any payment expressed either as a percentage or as a dollar amount. ...
  • The number of payments. ...
  • The period of repayment (the total time required to repay). ...
  • The amount of any finance charge.

What do you have to disclose if a triggering term exists in a mortgage?

Disclosures. Once a triggering term is used, then you must disclose the amount or percentage of the down payment; the terms of repayment, which reflect the repayment obligations over the full term of the loan, including any balloon payment; and the “annual percentage rate” using that term.

What is a trigger in financial terms?

Triggers in the context of investing are market or investment-related occurrences that may cause the system or the investor to take a certain action. An event (trigger condition) and an activity taken when the event occurs make up a basic trigger setup.

Which of the following is not a trigger term?

Final answer: The trigger terms under Regulation Z, part of the Truth in Lending Act, include references to the down payment, number of installments, period of repayment, and the finance charge. Among the options, 'Purchase Price' is NOT a trigger term.

How many days does a borrower have to cancel the loan contract?

The three-day cancellation rule permits borrowers to renege on certain mortgage agreements within three days without financial penalty. This right applies when the borrower's principal residence is used as collateral and is provided on a no-questions-asked basis.

What are the six pieces of RESPA?

An application is defined as the submission of six pieces of information: (1) the consumer's name, (2) the consumer's income, (3) the consumer's Social Security number to obtain a credit report (or other unique identifier if the consumer has no Social Security number), (4) the property address, (5) an estimate of the ...

What is trigger and its example?

The trigger is mostly used for maintaining the integrity of the information on the database. For example, when a new record (representing a new worker) is added to the employees table, new records should also be created in the tables of the taxes, vacations and salaries.

What are trigger words also known as?

A trigger word (also known as a power word) is an emotionally colored word or expression used to provoke a psychological reaction in readers (in our case – email recipients) by involving their imagination. Power words appeal to all types and shades of human emotions.

What are bad trigger words?

Troublesome, Backstabbing, Horrific, Idiotic, Disgusting, Ass-Kissing, Heartbreaking, Lonely, Lousy, Perilous, Painstaking, Money-Grubbing, Ruthless, Scandalous, Obnoxious, Brutally Honest, Horrifying, Critical.