Your loan amount, interest rate, and comparison rate aren't the only numbers you should be concerned with. There are quite a few fees that shock first-time loan applicants. Here are a few of those fees that you might encounter:
- Upfront fees. Also called application fees. Lenders may charge you between $50 and $500 for the application process. This isn't always the case, though. You may come across lenders with special discounts or promos for applying, so don't forget to ask about this when you inquire at different banks and lenders.
- Account-keeping fee. A monthly or annual fee charged for account administration.
- Late fees. This is a penalty for paying past your due date, typically a flat fee of $20.
- Early repayment fees. Some lenders discourage early repayment and impose a hefty fee on anyone who tries to pay ahead of their loan term's end.
