Assume you buy a home and borrow $125,000 at 6.4% for 20 years. You pay a total of $6,238 for origination fee, points, and mortgage insurance. In addition, you pay other loan costs of $2,182. You pay the first year’s hazard insurance premium of $385 and are required to deposit $295 into an escrow account. What is the real APR, assuming the loan is not paid off early?
7.05%
7.30%
7.34%
7.37%