Question

What is prepaid interest charged by a mortgage company?

a. Escrow points

b. Origination fee

c. Title fee

Answer 1

Prepaid interest is a fee charged by a mortgage company that is paid upfront at closing. It is the interest that accrues on the loan from the closing date until the end of the month.

Step-by-step explanation:

Prepaid interest is a fee charged by a mortgage company that is paid upfront at closing. It is the interest that accrues on the loan from the closing date until the end of the month. This fee is typically added to the closing costs and is calculated based on the loan amount and the interest rate.