What are APR fees?
The following fees ARE generally included in the APR:
- Points- both discount points and origination points. 1 point equals 1% of the loan amount.
- Pre-paid interest- The interest paid from the date the loan closes to the end of the month. If you close on August 10th, you will pay 21 days of pre-paid interest.
- Admin Fee
- Loan-processing fee-
- Underwriting fee-
- Document-preparation fee-
- Private mortgage-insurance
- Escrow/Settlement fee
The following fees are SOMETIMES included in the APR (check your compliance dept for these ones):
- Loan-application fee
- Credit life insurance (insurance that pays off the mortgage in the event of a borrowers death)
The following fees are normally NOT included in the APR:
- Title or abstract fee
- Attorney fee
- Notary fee
- Document preparation (charged by the closing agent)
- Home-inspection fees
- Recording fee
- Transfer taxes
- Credit report
- Appraisal fee
Prepaid items is a non-APR field that can be used for the prepaid escrows if necessary.