Commitment Fee

Definition

• A sum paid by a borrower to a lender in exchange for a promise to lend money on certain terms for a specified period.

Synonyms
deposit, assurance fee, solidify obligation

Related Terms and Acronyms

• Commitment — Definition,
  • A written agreement from a lender promising to lend money on certain terms for a specified time period.
• Finance Charge — Definition,
  • Charges that include all of the interest expected to be earned over the life of a loan, in addition to the service charges, mortgage insurance premiums, and other loan-related charges.