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  3. Prepaid interest

Exam term

Prepaid interest

Interest paid at closing for the period before the first regular payment, a charge that may change without a numerical tolerance cap but must be estimated in good faith.

Lessons that use this term

  • Mortgage fees: origination fees and discount points Florida
  • TILA-RESPA integrated disclosures: the Loan Estimate and the Closing Disclosure Texas

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