AMOUNT FINANCED

The Amount Financed is the loan amount applied for less the prepaid finance charges. Prepaid finance charges can be found on the Good Faith Estimate / Settlement Statement (HUD-I or IA). For example if the borrower's note is for $100,000 and the Prepaid Finance Charges total $5,000, the Amount Financed would be $95,000. The Amount Financed is the figure on which the Annual Percentage Rate is based. The Amount Financed is simply the loan Principal less the total of Prepaid Finance Charges.ANNUAL MEMBERSHIP
Amounts that may be charged annually for having a line of credit available. Often charged regardless of whether or not you use the line. Also referred to as a "participation fee."

Tags: amount financed good faith estimate prepaid finance charges