Which of the following is NOT included in APR calculations?

When calculating the Annual Percentage Rate (APR), the calculation is designed to provide a comprehensive measure of the cost of borrowing, expressed as an annual rate. This includes various components such as the interest rate, points, and certain fees associated with securing a mortgage.

Points, which are essentially upfront fees paid to lower the interest rate, are included in APR calculations as they reflect the cost of borrowing. Similarly, interest itself is a primary element of the APR, as it directly relates to how much the borrower will pay over the life of the loan. Fees paid to mortgage brokers are also included since they represent a cost that the borrower incurs when obtaining the loan.

In contrast, attorney fees are typically not included in APR calculations. This is because APR primarily focuses on the costs directly associated with the loan itself, whereas attorney fees may vary between transactions and don't consistently represent the cost of borrowing for every borrower. Hence, attorney fees do not reflect the consistent cost of the loan itself and thus are excluded from the APR. This understanding is crucial for borrowers to accurately assess the true cost of their loans when considering financing options.