What are the allowable charges that can be included in the finance charge of a mortgage?

All mortgage loans have closing costs. How you pay for them can vary. On a refinance, most people roll the closing costs into the new loan, and have next to nothing out of pocket. On a purchase, you can do they same thing, but it has to be worked into the purchase agreement as "seller paid closing costs". There are limits as to how much can be rolled in based on the loan program chosen. For example, on a standard conventional, you can roll in up to 3%, while on an FHA loan loan, you can roll in up to 6%. You can also roll closing costs into a slightly higher interest rate or either a purchase or refinance, but rolling it into the loan amount usually works out to be cheaper. www.SaintPaulMortgageBroker.com

Are you asking what are the finance charges that are included? Or do you have a specific fee in question?

Is this a purchase or a refinance? For a refinance, as long as you have the equity in your home, you can include any or all of the closing costs in the new loan amount. For a purchase, closing costs are not typically included in the loan amount (with the exception of FHA upfront mortgage insurance and VA funding fees). On a purchase, you can usually choose a higher interest rate and have the lender give you a credit to cover some or all of the closing costs.

Yes they can be financed into the loan on a purchase with a sellers concession. On a refinance they can usually be wrapped into the loan. FHA allows up to a 6% concession, Conventional allows 6% up to 90% and 3% up to 95%.