were doing the first loan (refinance) that applies to hoepa.
The term is 5 yr & 1 mo with balloon, amortized over 10 period.
Question: Do I use the 5 yr or 10 yr on the Treasury rate?
also the only charges are appraisal/title policy/attorney fees for loan & recording and flood. Is just the appraisal and flood the only items I'll use on the worksheet as for as fees.
thanks

Use the 5 year treasury rate. Use the closest term.

The only fees you include are finance charges [but no interest), fees paid to mortgage brokers, real estate underwriting fees [listed in 226.4(c)(7)] that are retained by the bank or an affiliate and credit life/disability insurance premiums. See §226.32(b)(1) for more info.

I need to clarify - you don't include prepaid interest in the HOEPA calculations?

Correct. From 226.32(b)(1)(i):

(1) For purposes of paragraph (a)(1)(ii) of this section, points and fees means:
(i) All items required to be disclosed under Sec. 226.4(a) and 226.4(b), except interest or the time-price differential;

If hoepa does not apply because you aren't over any points/fees do you still have to give the disclosure for the customer to sign ( at least 3 bus days prior to comcumation of loan)
Thank You

If the loan's APR and/or fees and charges do not exceed the respective HOEPA threshold established in 226.32, the notice is not required. Just remember you have to test for both the APR and the fees and charges.