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Categories: Economics & Finance
Commitment fees are small charges that are imposed by a lender at the time that a mortgage or other type of loan is extended to an applicant. The fee serves as a sign that the lender is pledging resources to enter into the business arrangement with the borrower. Depending on the current standards and circumstances that apply, the exact amount charged will vary.
(source: http://www.wisegeek.com/what-is-a-commitment-fee.htm)
Synonyms:
initial charge
