After a rather intereseting and at times humourous discussion today,
with a loan officer that has been in the business for a lonnnnnnggggg time. I thought I would share with you what exactly is in your APR
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 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
In most cases your APR should be within .25% of your note rate.
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