APR

What accuracy tolerances exist for the APR in CLOSED END loans?

An APR is accurate if it is not more than 1/8th of a percentage point above or below the APR calculated using the actuarial method

Define APR

Annual percentage rate A measure of the cost of credit expressed as a yearly rate

What fees are included in the calculation for APR?

Lots of overlap with fees that make up the finance charge PMI and MIP discount points and mortgage broker fees origination fees processing fees underwriting fees Essentially any fees that are paid for services necessary to get the loan to closing

What fees are NOT included in the calculation for APR?

Same fees that are excluded from the finance charge calculation title fees escrow fees notary fees appraisal fees credit report fees document preparation fees