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All About Exit Fees |
Written by Melanie C
Tuesday, 24 June 2008
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Not all lenders are transparent when it comes to fees - especially exit fees. Not only are they called a number of different names such as deferred establishment fee - which is confusing to the borrower - but they can change from what seems a low cost to a much higher cost because they only apply to a certain time-frame, such as the first two or three years after signing. Exit from the loan is most likely to happen after this time, so what appeared to be a small exit fee has then changed to one a great deal larger. Lenders seem able to get away with a great deal, but it is really up to the borrower to make sure they understand everything before signing. Asking your lender for specific clarification on every point is a good idea. Don't let him fob you off with some vague explanation, but make sure you understand all the costs involved and how they apply to your situation, both for the present and for the future. Then ask to have them in writing, with the assurance that nothing will change. Asking about additional costs for the early repayment of a loan is imperative. In the UK lenders must spell out all the costs in a way that is clear and easy to understand. In Australia, it is wiser to get a broker to find the best deal and help you understand its implications if you find the jargon difficult to understand. Article Source: http://www.ArticleBlast.com |
About The Author:
Visit QuickDirect (http://www.quickdirect.com.au) to demystify real estate jargon such as variable rate home loan and no deposit home loan.
Visit QuickDirect (http://www.quickdirect.com.au) to demystify real estate jargon such as variable rate home loan and no deposit home loan.
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