For fixed credit agreements, initial disclosure statements should include: the outstanding balance and information about the charges, payments, or  advances that are included within the balance; the term (and amortization period, if it is longer than the term); the date on which interest begins to accrue and the particulars of any grace  period; details about the interest rate, including how the interest rate may change during the term; the nature of any charges other than interest that will be payable by the borrower; the amount and timing of any advancements and/or payments to be made after the effective date of the statement; the total of all advances made and to be made by the lender to the borrower as a result of the credit agreement; the total of all payments to be made by the borrower to lender as a result of the credit agreement; the total cost of credit (i.e. the difference between the total advances and the total payments due); the annual percentage rate (or APR), which expresses the cost of credit (interest plus all other charges) as an annual percentage; the nature of any charges that the borrower must pay in case of default; a description of any item that has been put up as security by the borrower in  order to secure the loan; for credit sales, a description of the product purchased on credit by the borrower; for mortgage loans, a description of the circumstances, if any, under which the  borrower may make prepayments, and any charges for doing so; for non-mortgage credit agreements, a statement that the borrower is entitled to prepay the entire outstanding balance at any time without penalty and is entitled to make partial prepayments without penalty on any scheduled payment date; and if scheduled payments are not included as part of the credit agreement, the circumstances under which the outstanding balance, or any portion of it, must be paid Last reviewed: October 2014