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  • Whats included in the APR

  • The following fees ARE generally included in the APR:

    • Points- both discount points and origination points. 1 point equals 1% of the loan amount. Sometimes a lender will use origination as a single charge rather than charge an admin fee, processing fee, underwriting fee etc. which is essentially the same as each of these departments have its own personnel.
    • Pre-paid interest- The interest paid from the date the loan closes to the end of the month. Example: If you close on August 10th, you will pay 21 days of pre-paid interest by the end of the month.
    • 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 department for these ones):

    • Loan-application fee
    • Credit life insurance (insurance that pays off the mortgage in the event of a borrower’s 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 are a non-APR field that can be used for the prepaid escrows if necessary.