Definition of "Late Fees"
Sharon Kunz, Real Estate Agent
American Realty
Fees assessed by lenders when payments are late. Late fees are usually 4% or 5% of the payment. A borrower with a 6% mortgage for 30 years who pays a 5% late charge every month raises his or her interest cost over the life of the loan to 6.46%.
Have a question or comment? We're here to help.