I was adding a 2% fee to my construction loan draws for a year before my accountant asked 'why are you paying that?'. Realized I'd been reading the lender's admin cost line wrong the whole time.

3 comments

3 Comments

emery1921d ago

Honestly I can see the lender's side on this one. Those admin cost lines are usually pretty clear if you read the whole loan agreement. Amy483 is right it adds up, but that's the cost of not double checking your own paperwork. Most lenders would just say it was your responsibility to understand the fees you agreed to pay. Asking for a full year of refunds seems like a stretch when the mistake was on your end.

wright.lisa16d ago

Remember my buddy who had a similar thing with his contractor draws? He was paying a flat fee per draw but the lender's sheet listed it as a percentage. He didn't catch it for eight months. He argued that the confusing layout was a big part of the problem, and they ended up giving him half the overcharges back just to close the complaint. Sometimes they will work with you if you push, because a messy form helps your case.

amy48321d ago

That's a brutal mistake. I can see how you'd mix up the columns on a draw sheet, they make those things confusing on purpose. A two percent fee on construction loan draws adds up to a crazy amount of money over a year. Good on your accountant for catching it, you need someone watching that stuff. I'd be asking the lender for a refund on every single overpayment.