Finance Charges
This page provides an alphabetical, quick-reference list of common closing and mortgage fees, showing whether each is classified as a finance charge under the federal Truth in Lending Act (Regulation Z). Use the letter navigation to jump to a fee, and see the General Information section below for the underlying regulatory definitions and source links.
General Information
The federal Truth in Lending Act (TILA) along with implementing regulations (Regulation Z) and the regulator's Official Interpretations require that certain fees in addition to interest payments be considered when calculating the Total Finance Charge and Annual Percentage Rate on closed-end mortgage transactions.
12 CFR Part 1026 Regulation Z 1026.4 Finance Charge
Definition. The finance charge is the cost of consumer credit as a dollar amount. It includes any charge payable directly or indirectly by the consumer and imposed directly or indirectly by the creditor as an incident to or a condition of the extension of credit. It does not include any charge of a type payable in a comparable cash transaction.
