Mortgage arrangement fee, also known as a completion fee or a mortgage product fee, is a term used to describe the fee charged by some lenders to cover administration and primarily the reserving of funds for fixed rate and/or discounted rate

mortgage A mortgage loan or simply mortgage (), in civil law (legal system), civil law jurisdictions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners t ...

s. This fee may be paid separately, added to the mortgage loan increasing its size, or deducted from the value of

loan In finance, a loan is the tender of money by one party to another with an agreement to pay it back. The recipient, or borrower, incurs a debt and is usually required to pay interest for the use of the money. The document evidencing the deb ...

that the

lender A creditor or lender is a party (e.g., person, organization, company, or government) that has a claim on the services of a second party. It is a person or institution to whom money is owed. The first party, in general, has provided some property ...

is prepared to advance. The fee is usually between 0.5 and 1% of the loaned amount.

References

Mortgage {{realestate-stub