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
Statement made verbally. It is better legally to have a written statement because verbal ones without witnesses may be denied. ...
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Money payments to be delayed for a future date or extended over a period of time. ...
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Giving of a promise or guarantee to the receiver to instill confidence. ...
Recurring obligation or assurance given. ...
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