Question:

What are the good faith estimate PFC and POC fees?

Answer:

Good Faith Estimate PFC and POC fees are listed on the GFE and signify whether certain fees are to be paid at closing or prior to closing.

POC stands for Paid Outside of Closing. Appraisal fee and hazard insurance are two items that are paid upfront and outside of closing.

PFC stands for Prepaid Finance Charges. All items listed in the PFC column of the good faith estimate will have effect on the APR.

The good faith estimate and PFC and POC fees are not reliable enough to compare loan programs. You should get a Truth In Lending statement to accurately compare mortgage programs.

Some items on the GFE are used to calculate APR. They will be added to the interest rate payments to make the total APR of the loan. The Truth In Lending statement will list the APR and should be used to compare mortgage quotes.

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