Lender Fee
Quick Summary
An upfront fee charged by lender for funding the loan.
ELI5 Explanation
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It is a setup cost charged before your loan money is advanced.
Detailed Explanation
In private mortgages, lender fees usually range from 1% to 3% and are deducted from gross proceeds. Fee size depends on risk and deal structure.
Example
A 2% lender fee on $400,000 equals $8,000 deducted at closing.
Why It Matters
It reduces net proceeds and increases effective borrowing cost.