APR includes Mortgage Insurance, or no?

[Karen Westmont]

Does the APR, the annual percentage rate include mortgage insurance or not?
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I asked this question a few years ago and received binary answers!
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Thought I'd try again.
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Thank you.
*
Karen Westmont
graduate student


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[Karen Williams]

The following is the definition of APR from the Guide to Single Family Home Mortgage Insurance, a HUD website (http://www.pueblo.gsa.gov/cic_text/housing/home-insure/mortgage.htm#apr)
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Annual Percentage Rate
The Truth in Lending Act requires the lender to tell you the annual percentage rate (APR) charged on your home mortgage. The annual percentage rate is calculated by adding the interest rate, the discount points, the initial service charge, the premium paid to insure the mortgage, and certain other charges collected by the lender. The APR is not the same as the mortgage loan interest rate.
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This definition comes from the Truth in Lending Act.* Disclosure of the cost of credit is implemented under an administrative rule known as*Reg Z.* Here is a link to the text of the regulation:* http://www.fdic.gov/regulations/laws/rules/6500-1400.html#6500226.4
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Karen Williams
http://www.lanepowell.com/img/logos/lanepowell1.gif
************Shareholder
************Lane Powell PC
************601 SW Second Avenue, Suite 2100
************Portland, OR 97204-3158
************Direct: 503.778.2134
************Cell: 360.241.5615
************www.lanepowell.com (http://www.lanepowell.com/)


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From: bounce-1275943-4990694@list.cornell.edu [mailto:bounce-1275943-4990694@list.cornell.edu] On Behalf Of Karen Westmont
Sent: Sunday, April 01, 2007 5:07 PM
To: COMMUNITYDEVELOPMENTBANKING-L@cornell.edu
Subject: APR includes Mortgage Insurance, or no?



Does the APR, the annual percentage rate include mortgage insurance or not?
*
I asked this question a few years ago and received binary answers!
*
Thought I'd try again.
*
Thank you.
*
Karen Westmont
graduate student

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