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What is the finance charge on a mortgage?

A finance charge is the total amount of interest and loan charges you would pay over the entire life of the mortgage loan. This assumes that you keep the loan through the full term until it matures (when the last payment needs to be paid) and includes all pre-paid loan charges.

Loan charges include:

You can find your finance charge on page 5 of the Closing Disclosure form in the “Loan Calculations” section. 

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