The notary should know where to find the rate, APR, loan amount, prepayment penalty, automatic payment documents, and where the various payments are recorded in the HUD-1 Settlement Statement. The notary should be able to explain how the right to cancel works, and also why the APR is higher than the rate. The notary should be able to point to where the information about the monthly payments is, and what portion of the payments is for taxes, insurance, interest, and principal. Knowing where the basic information is is paramount, but the notary should NOT attempt to explain the terms of the loan to the borrower. The notary should point to where specific terms are and instruct the borrower to interpret it for themselves and/or ask their lender what it all means. Explaining the specifics of a person's loan might constitute giving legal advice which is not allowed for a non-attorney to do.