Which charge would not be considered a finance charge and thus not part of the APR calculation?

The charge that would not be considered a finance charge and therefore not included in the APR calculation is the escrow deposit for property taxes.

Escrow deposits are considered prepaid items and are not directly tied to the cost of obtaining a loan; rather, they are amounts set aside by the lender to pay future property-related expenses, such as taxes and insurance. Since these funds are not fees for borrowing money, they do not contribute to the cost of the loan itself or the APR, which is intended to reflect the actual cost of borrowing.

In contrast, discount points, mortgage insurance, and origination fees are all costs associated directly with obtaining the loan. Discount points represent upfront interest or fees that reduce the interest rate over the life of the loan. Mortgage insurance is a required charge when the down payment is below a certain threshold, functioning as a protection for the lender in case of default, and thus affects the cost of borrowing. Origination fees are directly related to the processing of the loan and represent a charge for the institution's services. All these fees directly influence the cost of borrowing and are included in the APR calculation.