APR (Annual Percentage Rate)

Last modified December 4, 2021 The annual percentage rate is the cost of borrowing money from the lender INCLUDING certain Loan Closing fees. The APR shown as a percentage of your mortgage amount INCLUDING certain items in the loan closing. The APR adds the interest rate and certain APR items (fees) that are associated with the loan Closing. The APR is NOT the interest rate that is charged over the life of the loan. That is called the Loan Interest rate. Example: If the Seller pays all the Buyers Loan Closing Costs, the APR is exactly what the Interest Rate is on the mortgage. APR items on a mortgage loan include the following loan closing fees. The following are all the examples that might be charges to Close a loan. Keep in mind, that this entire list is NOT what you would see on a typical Loan Closing.

Possible Fees Included in APR Finance Charges: 203K Permits, 203K Consultant Fee, 203K Inspection Fee (Lender Makes These Inspections), 203K Supplemental Document Fee, 203K Supplemental Origination Fee, Administrative Fee, Amortization Schedule, Application Fee (if only sometimes charged), Appraisal Review (Review by Lender), Assignment Fee, Assumption Fee, Attorney Fee for Document Preparation or Closing (3rd Party), Bank Fee/Points, Broker’s Fee, Buydown/Subsidy Fee (Borrower’s Portion), Closing Coordination Fee, Closing Fee, Commitment Fee, Compliance Audit, Consultant Fee, Conversion Fee, Copy Fee, Customer Identification Program (CIP) U.S Patriot Search, Condo Certification (Lender Required), Courier Fee (All, Including Payoff from Title Co.), Credit Life Insurance (if required by Lender), Discount Fee, Document Preparation (lender fee), Document Preparation Fee (3rd Party Fee) (Some investors consider this to be a prepaid finance charge. We will include it unless you request otherwise), Document Review, Download Fee, Electronic Delivery, Engineers Report (if required by Lender), eRecording (if paid to creditor or third party), Escrow Fees to Title Company, Escrow Fees to Lender (203K), Escrow Waiver Fee to Lender, Express Mail (All, Including Payoff from Title Co.), Final Inspection Fee (unless payable to appraiser), Final Inspection Fee – Post Closing, Flood Life of Loan Monitoring, Fulfillment Fee, Funding Fee, Good Funds (To Lender), HOA Certification (Lender Required), Home Inspection (if required by Lender), Homeownership Counseling Fee, Home Warranty (if required by Lender), HUD Review Fee, Inspection/Photo Fee (Not to Appraiser), Inspection and Handling Fees for the staged, disbursement of construction loan proceeds, Insuring Fee, Interest to End of Month (FHA, VA & Conv.), Lender’s Inspection Fee, Loan Delivery Fee, Loan Docs. (fees for preparing deeds, mortgages and similar documents if to 3rd party lawyer), Loan Level Pricing Adjustment (LLPA), Lock-In, Lock Extension Fee, Long Distance (To Lender), MCC Fee, MERS File Registration Fee, Mobile Signing Fee, Modification Fee, MIP (mortgage insurance premium), Mortgage Insurance, Origination Fee, Per Diem Interest, Plan Review Fee, PMI (Initial Premium), PMI (Reserves), Post Closing Fee, Pre-Plan Inspection Fee, Processing Fee, Rate Lock or Extension Fee, Rebate Fee, Refinance Fee, Release Fee, Review Fee/Attorney Review Fee, Supplemental Discount, Supplemental Origination, Tax Research Fee (if tax service fee), Tax Service Fee (for life of loan), Title – Closing Protection Letter Fee, Title – Commitment Fee, Title Service Fee, Transaction Fee, Transfer Fee, Underwriting Fee, USDA Guarantee Fee (Up-Front and Monthly), VA Funding Fee, VA No-Bid Fee, Warehouse Fee, Warranty Deed, Wire Fee,