Prepaid charges include which of the following items?

Prepaid charges include which of the following items?
A . Origination fee
B . Credit report fee
C . Conveyance tax
D . Per diem interest

View Answer

Answer: D

Explanation:

Prepaid charges refer to certain upfront costs paid at closing.

These include:

Per diem interest (D), which covers the interest from the closing date to the end of the month.

Other items like origination fees (A), credit report fees (B), and conveyance taxes (C) are not considered

prepaid charges; they are typically categorized as closing costs or settlement fees.

References:

Real Estate Settlement Procedures Act (RESPA)

TILA-RESPA Integrated Disclosures (TRID)