Besides the interest rate, there might be additional costs associated with a loan, including:
- Origination fee: A one-time charge levied by the lender to process the loan application.
- Prepaid interest: Interest charged upfront on the loan amount.
- Points: Fees paid to the lender to lower the interest rate (typically 1 point equals 1% of the loan amount).
- Late payment fees: Penalties charged for missed or late loan payments.
- Application fees: Fees charged by the lender to evaluate your loan application.
