A fee paid by a lender to an investor in exchange for the investor's promise to buy a mortgage in the future.

Commitment Letter A letter issued by the lender to the applicant that states funds will be provided subject to written terms and conditions.

A fee paid by a borrower for a lender's commitment to make funds available.

Definition A charge by a lender for holding credit available for a borrower.

See closing fee.

A per annum fee applied to undisbursed balances that lenders are committed to lend; the fee is charged until the end of the availability period.

A per annum fee applied to undisbursed balances that lenders are committed to lend; the fee is charged until the end of the availability period.

Fee paid by a potential borrower to a lender for the lender’s promise to lend money at a specified rate and within a given time period.

Fees charged by commercial banks for giving its legal commitment to make a loan in future.

A fee charged when an agreement is reached between a lender and a borrower for a loan at a specific rate and points and the lender guarantees to lock in that rate.

A fee paid in return for a Commitment to lend money.

A fee, payable usually on a semi-annual or quarterly basis, by the buyer to reserve the availability of a loan. The fee is payable on the undrawn balances.

A commitment fee is a finance charge assessed on committed, but unborrowed, funds. A lender's right to charge a commitment fee is specified within the loan documentation. Commitment fees ensure t [..]

A lender extending loan incurs several costs for administrative and clerical tasks associated with the transaction. Costs are coupled with loan from the time of issue all the way through to the postin [..]

A fee paid on the unused portion of a credit line.

(1) A fee paid (usually on a bi-annual or quarterly basis) by the borrower to compensate his bank for engaging funds under a specific loan agreement, i.e. the fee on the available but undrawn portion [..]

A per annum fee applied to the portion of the unused financing (the amount not yet drawn down) until the end of the availability period.

It is an interest which is charged on a loan applicant if he doesn’t withdraw the sanctioned loan within a stipulated time period. The interest rate can range from 1%-5%.

A fee charged by the banking institution for setting aside funding that are not utilised by the borrower. Usually only applicable to overdraft facility.

A term used in many contexts, the most common being …

  A fee charged by the lender for agreeing to hold credit available. [Chapters 11 and 21] Common-size analysis