Question

Explain the features of home loan establishment fees. (Explain the features and applications of relevant fees, charges and commissions).

Answer 1

Taking home loan is considered one of the toughest financial decision taken by an individual.

For taking home loan we have to pay establishment fee.Here establishment fee means  costs of creating our file,making and producing documents which are essential for home loan.The amount we pay for home loan documentation vary from organisation to organisation. So lender of home loan should be decided pn the basis of establishment fee.

Following are the fee included under home loan establishment fee which is also called feature of home loan establishment fee;

1.Application fee

2.Processing fee

3.Valuation fees

4.Government charges

5.Legal Fees

6.Prepayment fee

7.Notary fee

8.Documentation fee

9.Stamp duty

10.Mortgage registration fee etc.

Apart from above mention home loan establishment fee followings are other fees for home loan;

1.Default fees if fail to pay repayment.

2.Monthly fees.

3.Early exit fees

4.Deffered Establishment fees

5.Annual Fees

6.Discharge fee etc.