What is the AMOUNT FINANCED?
A. The amount financed is the mortgage amount applied for MINUS prepaid finance charges and any required deposit balance. Prepaid finance charges include items such as loan origination fees, commitment or placement fee (points), adjusted interest, and initial mortgage insurance premium. The Amount Financed represents a NET figure used to allow your client to accurately assess the amount of credit actually provided.
The amount financed is the mortgage amount applied for minus prepaid finance charges and any required deposit balance. Prepaid finance charges include items such as loan origination fee, commitment or placement fee (points), adjusted interest, and initial mortgage insurance premium. The Amount Financed represents a net figure used to allow you to accurately assess the amount of credit actually provided.
The Amount Financed is your mortgage amount minus prepaid finance charges. Prepaid finance charges include items such as loan origination fees, commitment fees (points), interest adjustments, and initial mortgage insurance premiums (if applicable). The Amount Financed represents a net figure used to allow you to accurately assess the amount of credit actually provided. Does this mean I will get a lower mortgage than I applied for? No. If your loan is approved in the amount for which you applied, then this amount will be provided toward your home purchase or refinance at closing. Q: Why is the ANNUAL PERCENTAGE RATE different from the interest rate for which I applied? Why is the AMOUNT FINANCED different? A: The Amount Financed is lower than the amount you applied for because it represents a net figure. If someone applies for a mortgage of $75,000 and the prepaid finance charges total $2,000, the amount financed would be shown as $73,000 or $75,000 minus $2,000. The APR is computed fro
The Amount Financed is the loan amount applied for, minus the Prepaid Finance Charges. Prepaid Finance charges include items paid at or before settlement, such as loan origination, commitment or discount fees (“points”), adjusted interest, and initial mortgage insurance premium. The Amount Financed is lower than the amount you applied for because it represents a NET figure. If you applied for $50,000 and the Prepaid Finance Charges total $2,000, the Amount Financed would be $48,000.
The Amount Financed is the loan amount, minus the Prepaid Finance Charges. Prepaid Finance Charges include items paid at or before closing, such as loan origination fees, commitment fees (“points”), prepaid interest, and initial mortgage insurance premiums, if any. The Amount Financed is lower than the amount the Borrower applied for because it represents a NET figure. If you applied for $150,000 and the Prepaid Finance Charges total $3,000, the Amount Financed would be $147,000.
