| Although APR can be a tricky concept to understand, | | | | Another example of something that is not factored |
| there are a few basic points to remember when | | | | into your APR are the title fees. These title fees pay |
| figuring out what is actually included, or important, when | | | | for the expense of the title rep that is present at your |
| calculating APR. | | | | closing and also for the title insurance that covers you |
| The basic rule of thumb is whether or not that specific | | | | in the event you have an unexpected lien on a |
| item provides an actual value. This item should create | | | | property you just purchased--again, additional value is |
| a sort of value in addition to the fact that it is just a | | | | given to you in exchange for services. |
| charged item. For example, the $300 or so that your | | | | Other items like origination fees or points are included in |
| appraisal costs is not factored into your APR, because | | | | the APR. However, they provide no value and just like |
| you get your house appraised for that fee--meaning | | | | interest, they are charged solely as a premium for the |
| that you are charged for a service that gives you | | | | privilege of borrowing the money. |
| some sort of value in return. | | | | |