Charges associated with the processing, approvals, and maintenance of a loan, in addition to the interest rate, typically paid by the borrower.
Types of loan fees include:
i. Origination Fees – Fees charged for obtaining a loan. Typically a percentage of the loan amount.
ii. Underwriting Fees – Fees charged for underwriting the loan, typically included in finance charges.
iii. Late Fees – Fees charged as a percentage of the payment due when late.
iv. Exit Fees – Additional compensation due at the end of the loan when the loan is paid off.