commercial mortgages<\/u><\/a>, or small business loans.\u00a0<\/b><\/p>If an individual is taking out a mortgage, he or she may be asked to pay a mortgage commitment fee. You need to know how much it will cost you, and if you can get a refund.<\/b><\/p>
Lenders may charge a mortgage commitment fee for processing the loan and vouch for the availability of funds to borrow in the future.\u00a0<\/b><\/p>
The amount of the fee is usually equal to a percentage of the total borrowed amount. For example, if the lender is charging 0.25% as a commitment fee on the principal amount of $200,000, the fee will be $500.<\/b><\/p>
While these fees are not charged on every type of loan, they are very to be charged on mortgages.\u00a0<\/b><\/p>
This is because it may take a long time for the mortgage loan to close from the day of approval, and both the lender and the borrower want to make sure the loan is disbursed.\u00a0<\/b><\/p>
Borrowers often apply for a mortgage early in the home buying process. As this process takes place well in advance, a borrower may want to be sure that the lender will provide the mortgage when it is finally time to close and transfer home ownership.\u00a0<\/b><\/p>
The borrower can pay this fee to get an assurance from the lender that the funds will be available in the future at the time of closing.<\/b><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t