### Question
What does precomputed finance charge mean?


### Answer
**Precomputed finance charge** has the following meaning in *12 U.S.C. § 1735f*:

> interest or a time price differential within the meaning of sections 106(a)(1) and (2) of the Truth in Lending Act (15 U.S.C. 1605(a)(1) and (2)) as computed by an add-on or discount method

#### Citation:
  - *12 U.S.C. § 1735f*
  - Heading: **CHAPTER 13-NATIONAL HOUSING > SUBCHAPTER V-MISCELLANEOUS**

