Mortgage Processing And Origination Fees
Fees are different payments your lenders may charge — fees for having your house appraised, the mortgage processing fees, the mortgage origination fees.
Your lender must provide you with a TIL (Truth in Lending) form, which gives an important information about your annual percentage rate, pre-payment penalty, if your loan is adjustable or not.
While most fees are legitimate, you still should keep your eyes wide open and ask questions to get the deal that fits you best.
Annual percentage rate (APR)
Annual percentage rate (APR) is the figure which is designed to express the true cost of the loan by taking into account the base interest rate and other fees. APR is a good starting point for comparing the cost of the loans, even though comparing medium and long-term period isn't that simple.
The APR is higher that the quoted interest rate, but it doesn't influence your real monthly payments, which depend on the interest rate.