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A loan commitment of $4.43 million with an up-front fee of 60 basis points and a back-end fee of 35 basis points. The take-down on the loan is 40 percent. Calculate the total fees you will pay on this loan commitment.

User Ufuk Onder
by
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1 Answer

5 votes

Answer:

Total fees paid = $2,700,085

Step-by-step explanation:

Given:

Loan Amount = $4,430,000

Up-Front basis fee = 60 points

Back-end fee = 35 points

Take down = 40 %

Computation:

Up-Front basis fee = $4,430,000 x 0.0060

Up-Front basis fee = $26,580

Back-end fee = $4,430,000 x 0.0035

Back-end fee = $15,505

Take down amount = $4,430,000 x 40%

Take down amount = $1,772,000

So

Total fees paid = [$4,430,000 - $1,772,000] + $26,580 + $15,505

Total fees paid = $2,700,085

User Old Nick
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