Do banks charge loan fees?
When choosing a lender or bank to issue a loan, keep in mind that there are extra and hidden fees from both. Banks do charge loan fees and it is important to know what they are and how frequently they charge them.
First, when you apply for a loan through a bank, you are subject to an application fee. Some banks have special programs based on maximum income levels where they can waive application fees. However, the fees on average start at $150 and can be as high as $300.
Another fee that is common for banks to charge on loans is monthly services fees. These fees are based on a small percentage of what a user borrows from the bank and are typically less than 1%. The monthly fee goes to maintenance and administration costs for keeping your loan open with the bank.
There are also fees that banks charge to borrowers as a penalty for not paying their loans on time. When you sign a mortgage or loan contract, in the details there are specified dates where you must pay the loan, whether it is monthly or fortnightly. If you miss a repayment or only make a partial repayment on the loan, you are subject to a default fee.
Banks and Loan Fees Conclusion
Banks can charge loan fees based on many factors of a loan. Here at Mortgage House, we also add loan fees to mortgages, however, they are not hidden. Mortgage House lenders can help you distinguish and define these fees.