Fees Included or Excluded in APR's

The fees that are generally included in the APR:

•       Pre-paid interest. The interest paid from the date the loan closes to the end of the month. Most mortgage companies assume 15 days of interest in their calculations. However, companies may use any number between 1 and 30!

•        Loan-processing fee

•        Document-preparation fee

•         Private mortgage-insurance  

•         Points - both discount points and origination points  

•         Underwriting fee

The fees that are  sometimes included in the APR:

•       Credit life insurance (insurance that pays off the mortgage in the event of a borrowers death)

•       Loan-application fee

The fees that are normally not included in the APR:

•          Escrow fee

•          Attorney fee

•          Notary fee

•          Home-inspection fees  

•          Title or abstract fee

•          Transfer taxes

•          Credit report  

•          Document preparation (charged by the closing agent)

•          Appraisal fee

•          Recording fee

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