If the Prepay Odd Days Interest option is selected, you will be able to select First Period Accrual Method, how the Prepaid Interest is collected, who its paid by and whether it will be collected at closing or before closing.
A Prepaid Interest fee is created when the number of odd days and prepaid odd days interest is greater than zero. The fee is read-only and can only be removed or modified by changing the options for the Prepaid Odd Days interest section. On the Loan Estimate and Closing Disclosure, under Prepaid Interest Fee, you will see “Per Day” amount that is calculated by dividing Prepaid Odd Days Interest by number of Odd Days.
The Fee is placed under Prepaids section, APR is affected and the variance is permitted.