Commitment Fee
Definition of "Commitment fee"
Charge by the lender to keep credit available to the potential borrower. Once the loan is made, interest is charged on the amount borrowed. Real estate businesses often need money available for land development and building construction. Typically, the bank will charge a commitment fee on those funds.
Popular Real Estate Terms
A loan in which the entire charge is subtracted up front from the face value of a loan. The proceeds received are the face value of the loan less this deduction, which increases the ...
Stated rate of interest on the face amount of a loan or installment note. ...
Roof having two slopes or pitches on each side. The lower slope is greater than the upper slope. ...
Lessors of real estate play a crucial role in the leasing process. They enable property owners to boost their assets and profits while providing tenants access to dwelling spaces and ...
Precalculated tables providing the present values of $1 or an annuity of $1 for different time periods and at different discount rates. ...
To obtain the right through authorization to act as a legal representative and agent for another. ...
A liability that does not go beyond the owner's investment in a real estate business. A corporation and limited partners have this benefit. The stockholders of a corporation usually have ...
(1) Short-term loan that is made in anticipation of permanent longer term loans. The interest rate on such a loan is usually higher than on longer term loans. (2) A business loan in which ...
Simply put, probate is a legal proceeding whereby the will of a deceased is tested for validity. The definition of probate is not known to most Americans. According to a Gallup survey, ...
Have a question or comment?
We're here to help.