Affidavit of Affixture Included in APR?

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Question:

We have a loan that is a mobile/manufactured home on land. It sits on a basement and has a garage. We are wondering if the fee, $150.00 to the State of Michigan for the Affidavit of Affixture, is to be included in the APR.

Answer:

by Randy Carey:

If this is a State of Michigan fee and this is required to be filed in order to properly perfect your lien, then it would be excluded.

(e) Certain security interest charges. If itemized and disclosed, the following charges may be excluded from the finance charge:

(1) Taxes and fees prescribed by law that actually are or will be paid to public officials for determining the existence of or for perfecting, releasing, or satisfying a security interest.

Answer:

by Richard Insley:

Actually, the correct question (the one Randy answered) is "is the fee a Finance Charge?" Since all FCs must be reflected in the APR, the only remaining question would be timing. If the fee is payable at or before consummation, then it is a Prepaid FC--causing it to hit the APR a bit harder.