The reason why APRs are confusing is because the rules to compute APR are not clearly defined. What fees are included in the APR?
The following fees ARE generally included in the APR: Points – both discount points and origination points Pre-paid interest. The interest paid from the date the loan closes to the end of the month. Most mortgage companies assume 15 days of interest in their calculations. However, companies may use any number between 1 and 30!
