How is the commitment fee calculated?
There are a lot of fees when it comes to loans. It is important to speak directly with a mortgage lender that directly gives concrete information about how much the total amount of fees are and when they are due. Interestingly, an often forgotten fee is the commitment fee. This commitment fee is calculated by the amount of your loan, not just what you have paid for on loan.
The fee is typically due as soon as the papers are signed and are charged directly to the line of credit or loan. Usually, this type of fee is added to personal loans and ranges between 1 to 6% of the total borrowed amount.
Mortgage House understands that managing the world of loans can be confusing. This is why our lenders are always ready to assist by providing clear and straightforward answers regarding the convenience and affordability of our loans. Are you looking for one place to pay and keep your loans and lines of credit? Here at Mortgage House, we offer personal loans, car loans, and lines of credit for businesses to help you achieve your unique goals.
Commitment Fee Conclusion
Overall, when you try to calculate your commitment fee on a loan, make sure to first look at the terms and agreements. In the signed paperwork, there should be a clear percentage or the direct amount due at the beginning of your loan. Once the loan hits your account, a charge should be added for the commitment fee.