- What is Annual Percentage Rate?
The APR or Annual Percentage Rate calculation was created to
measure the "true cost" of a loan, a single number
enabling borrowers to comparison shop among different lenders offering various note rate/loan fee
APR or Annual Percentage Rate is based on, or consists of: interest charges,
mortgage insurance premiums and the fees charged in connection with making the loan. These are expressed as a
percentage of the amount financed.
The specific fees included in the APR
calculation make up the "Prepaid Finances Charges" or "APR Fees." These fees also enable the calculation of the
"Amount Financed" and "Total Finance Charge" figures which appears on the Truth-In-Lending Statement
In simple terms, APR Fees include fees paid in connection with obtaining the
loan. Fees that might be paid in a comparable "all cash" transaction generally are not considered APR Fees.
Lenders often disagree in their interpretations about which fees are
APR Fees and which are not. Under Regulation Z, secondary market purchasers of closed loans
assume liability for APR and Total Finance Charge errors committed by the originator of a loan. For this reason, the
lender will typically rely on its own interpretation of APR Fees, and will decline to purchase or originate loans
which it feels violate these provisions of the Truth-In-Lending Act.
our APR Fee chart for a comprehensive list of fees that might be charged in a loan transaction. An
'x' mark appears in the column labeled "APR Fees" if the fee is one that Associate Mortgage's lenders generally
consider to be a Prepaid Finance Charge.
- Paid Out Side of Closing or Prepaid (POC) :
- Is paid by the borrower. For example, typically, the appraisal fee is paid to the
appraiser when they arrive to perform the property inspection. The credit report is also paid by the borrowers at the
time it is ordered.
This list includes fees commonly charged at or before closing. If you see
that a particular fee not listed here, please contact a representative of
Associate Mortgage for a determination of whether it is considered in determining your APR or Annual Percentage Rate.
For more information on
Regulation Z, click here....
|Lender Origination Fee||x|
|Loan Discount Fee||x|
|Appraisal Fee|| POC|
|Credit Report Fee || POC|
(one time inspection -- excludes construction
|Broker's Origination Fee||x|
|Broker Loan Discount Fee||x|
|Tax Service Fee||x|
|Flood Determination Fee|
(without life-of-loan coverage)
|Life Of Loan Coverage Flood Fee|
(or combination of flood
determination and life-of-loan coverage)
|Lender/Broker Underwriting Fee||x|
|Lender Courier Fee||x|
|442 Recertification Fee|| |
|Mortgage Insurance Premium and Impound Cushion
|Application Fee || |
|Escrow/Closing Agent/Closing Attorney Fee
|Title Search/Abstract Fee|| |
|Title Exam/Survey Fee|| |
|Title Binder Fee|| |
|Document Preparation Fee **|| |
|Redraw Fee|| |
|Notary Fee|| |
|Lender's Attorney Fee||x|
|Title Policy Premium Fee|| |
|Sub Escrow By Title Company To Pay Off Existing Liens On Loan
|Co-Op Lien Search Fee|| |
|Title Endorsement Fees|| |
|Fax Fee By Title Company||x|
|Courier, Email and/or Copy Fee By Title Company
|Mortgage Tax|| |
|Recording Fees|| |
|City/County Tax/Stamps|| |
|State Tax/Stamps|| |
|Intangible Tax|| |
|Survey Fee|| |
|Pest Inspection Fee|| |
|Consolidation Prep Fee|| |
|Wire Transfer Fee
(regardless of who charges it)
|Non-Closing Attorney Fee
(retained by borrower)
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