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What are prepaid interest charges?

Answer:

Prepaid interest charges are charges due at closing for any daily interest that accrues on your loan between the date you close on your mortgage loan and the period covered by your first monthly mortgage payment. 

This amount is listed on Page 2, section F of your Loan Estimate and Page 2, section F of your Closing Disclosure

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. These charges may change between the time you receive your Loan Estimate and the Closing Disclosure.

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