What is an annual facility fee?
A credit facility is a type of borrowed account that is made available. In other words, the facility is committed. Credit cards, for example, have a line of credit, but they frequently change. An annual facility fee is a small percentage of this borrowed amount paid directly to the mortgage or home loan provider.
The percentage amount varies depending on the facility or company that owns the primary home loan. However, on average, the annual facility fee is about $395-$595. There are ways to negotiate the amount, or you can shop for the best deal, including annual fees. Since this is an annual fee, the fee is paid and charged as soon as the papers are signed. The same anniversary for the signed borrowed amount is when the annual facility fee is charged.
It is a non-refundable fee based on the entire line of credit, not just what is used. For example, you can have a credit card with a limit of $5,000, but only $200 is used. The charge will be applied based on the $5,000, regardless of whether it is unused.
Annual Facility Fee Conclusion
An annual facility fee is charged directly to the line of credit. Mortgage House experts can offer you help by looking into the annual facility fee on your account. Our Mortgage House loan experts also aid in reviewing loan options. Bundling car loans, personal loans, and auto loans can save you money while also making the repayment process smooth and easy.