What type of fee is commonly included in a mortgage Finance Charge?

The finance charge in a mortgage refers to the total cost of borrowing, which includes various fees associated with securing the loan. Commonly included in this finance charge are loan fees and miscellaneous charges, such as origination fees, underwriting fees, and points. These fees are directly related to the loan itself and contribute to the overall cost of borrowing.

In contrast, real estate taxes, maintenance fees, and homeowner association dues are typically not included in the finance charge. Real estate taxes are usually assessed on the property itself and are separate from the cost of obtaining a mortgage. Maintenance fees pertain to property upkeep, and homeowner association dues are fees collected by community associations for shared amenities or services. While important costs for property owners, these items do not represent charges associated with the loan financing itself, and therefore, they fall outside the definition of the finance charge.