Whether borrowing money for a home, a car or charging money on a credit card, each form of credit quotes both the actual interest rate your payment is calculated on, as well as an annual percentage rate (APR). The APR is a measure of the cost of credit expressed as a nominal yearly rate based on the amount and timing of the payments made by the consumer. The larger the discrepancy between the interest rate and the APR, the more cost there is for that loan.
For the mortgage process, fees that factor into your APR may consist of the following more common fees as well as a myriad of others that are less commonly charged. If in doubt, ask your Lender if the fee is part of the APR calculation.
| FEES INCLUDED IN APR | FEES NOT INCLUDED IN APR |
| Admin fee | Appraisal fee |
| Appraisal review | Credit report |
| Appraisal update | Engineer’s report if not required by lender |
| Processing fee | Flood insurance |
| Closing fee | HOA dues |
| Commitment fee | HOA transfer fees |
| Copy fee | Home inspection |
| Condo Certification | Discount points paid by Seller |
| Discount points | Recording fee |
| Document preparation fee | Tax transfer fee |
| Document review | Title insurance |
| Electronic delivery | Title endorsements |
| Engineers report if Lender required | Transfer tax |
| Escrow settlement fee | |
| Express mail | |
| Flood certification | |
| Funding fee | |
| Loan doc fee | |
| Lock-in fee | |
| Lock extension fee | |
| Mobile notary fee | |
| Private Mortgage Insurance (PMI) | |
| Origination fee | |
| Tax service fee | |
| USDA Guarantee fee | |
| VA funding fee | |
| Wire fee |
As always, if you have questions, feel free to reach out to me at 360-459-1200.
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Mortgage Info By Michelle Wickett 