Click to return to BOL home page
Banker Store Read A Reg BOL Insiders Career Connect Learning Connect Bankers Information Network

Search BankersOnline
using Google









Banker Store

Bankers Info Ntwk


Career Connect

Learning Connect

Guru Central


Ask a Guru

Bankers Threads

Contact Us

Give Us Feedback


About Our Sponsors

About Us

Print Friendly! Email This Article! Discuss NOW!

Mortgage Loans Fees & the APR
Answer by Jim Bedsole and Richard Insley, BOL Guru
Guru Bio

Question:  What fees and or charges affect the APR on a closed end mortgage loan (fixed rate)?

Answer by Jim Bedsole:  Any fee or charge that is a finance charge will affect the APR on a closed end mortgage loan (fixed rate). For clarity on which fees or charges are a finance charge, study Reg Z section 226.4and the applicable staff commentary. These documents give a number of specific examples of fees that are and are not finance charges.

Answer by Richard Insley:  Don't pay too much attention to the names of your fees. Look instead at the nature of each fee, the ultimate recipient, and and any upcharge. Apply the duck rule--if it looks like a FC, it's a FC, unless you can prove otherwise.

First published on 10/05/09

Privacy Policy    Disclaimer   Recommend This Site !   Contact Us

BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.