Okay, I just settled on a REFI monday and I have till tomrrow night to rescind.

Here are the facts:

- New loan $411,100.

- 20 yr term at 4%.

- Total cash paid at closing was ~$6000

- Of the total $6000 paid, the escrow, taxes, home insurance was about ~$4500 

- Of the total $6000 paid, the closing fees paid to lender and title insurance (HUD-1 section 800 and 1100 fees) was ~$1600

- Truth in Lending statement says new loan amount is 411,100. It also says amount financed is $410354.86. Which gives a difference of $745.14 prepaid finance charge.

Question:

Why is the prepaid finance charge on the TIL statement not equal to the prepaids on my HUD-1 section 800 and 1100 fees? Did I get scammed when i paid $1600 for loan closing fees (includes lender and the title charges) instead of the $745.14 prepaid finance charge calculated from my TIL statement?

THANKS!

Sushi Mr:

Why is the prepaid finance charge on the TIL statement not equal to the prepaids on my HUD-1 section 800 and 1100 fees?

Your prepaid finance charges do not include fees in the 1100 section as they are paid to a third party and not the lender. Prepaid finance charges are those that are paid to the lender and come from section 800 and plus any prepaid interest in section 900. This is deducted from your loan amount for purposes of the Truth In Lending Statement to show Amount Financed. The difference is used for calculating your APR (Annual Percentage Rate). Everything looks good on what you received.