IF YOU’VE EVER WONDERED WHAT YOUR APR CONSISTS OF, READ ON…

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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.

 

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