What is not included in the Finance Charge (APR)?

The loan origination fee is specifically considered a part of the finance charge when calculating the Annual Percentage Rate (APR). This fee encompasses the costs associated with processing the loan application, underwriting, and preparing the loan documents, all of which are integral to the transaction and thus factored into the APR calculation.

In contrast, notary fees, appraisal fees, and credit report fees are typically not included in the finance charge. These fees can be considered as third-party charges that the lender does not keep. While they are necessary costs associated with securing the loan, they are not part of the cost of borrowing as defined by the APR. Understanding how the various fees contribute to the finance charge helps clarify how lenders present the overall cost of loans, guiding consumers in their decision-making process.