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.