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.
The following fees are SOMETIMES included in the APR (check your compliance department for these ones):
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
Document preparation (charged by the closing agent)
My Lending Network Team, Southwest Funding LP 1110 N Loop 336 W Ste 400, Conroe, TX 77301
Southwest Funding, LP (Branch NMLS #303417) is an equal housing lender. This is not a commitment to lend or extend credit. Programs, rates, terms and conditions are subject to change without notice. Terms and conditions apply. All rights reserved. Contact us for details. Consult your accountant about tax deductions. “NMLS Consumer Access”