Which of the following is considered a trigger term in a closed-end mortgage loan advertisement?

In the context of mortgage advertising, trigger terms refer to specific details that can prompt the need for additional disclosures under the Truth in Lending Act (TILA). When advertisers use certain key phrases or terms, they must provide more comprehensive information about the loan's terms to ensure consumers can make informed decisions.

The down payment amount qualifies as a trigger term because it directly affects the actual costs that a borrower will face when obtaining the loan. Stating a specific down payment in advertising can lead the consumer to assume the loan's costs based on that amount, thereby necessitating the disclosure of additional terms, such as the annual percentage rate (APR), total amount financed, and payment terms. This inclusion of details is crucial for transparency in lending practices.

In contrast, while interest rate, loan term, and monthly payment can also greatly inform a consumer about the mortgage, they do not automatically require the same level of detailed disclosures when mentioned. Therefore, the down payment amount stands out as a clear trigger term that necessitates further elaboration in advertisements to protect consumer understanding and compliance with regulatory standards.