Final answer:
The acronym 'PFC' on a Good Faith Estimate (GFE) generally refers to the Prepaid Finance Charge, which comprises various costs related to obtaining a mortgage that are paid upfront. The correct option is B.
Step-by-step explanation:
On a Good Faith Estimate (GFE), a fee marked as 'PFC' typically stands for Prepaid Finance Charge. These are the costs associated with obtaining a mortgage that must be paid in advance. Prepaid finance charges can include items such as loan origination fees, mortgage insurance premiums, and interest that is paid from the date of the closing to the end of the month.
Not all fees associated with a mortgage are considered prepaid finance charges, but those that are, affect the annual percentage rate (APR) that the borrower will pay.