Finance category
Mortgage, loan, investing, tax, and money calculators.
Loan Servicing Fee Calculator
Loan servicing is the back-office work of collecting payments, managing escrow, issuing statements, and handling payoff. This calculator sizes the fees on seller-carry, commercial, and some specialty residential loans.
0.25% mortgage, 0.5-1% commercial
Annual servicing cost
$738
Monthly equivalent
$61
Total servicing over hold
$7,420
How the math works
Most residential mortgages bundle servicing fees into the interest rate rather than charging separately. Seller-carry and commercial loans typically charge servicing directly — 0.25% mortgage, 0.5-1% commercial.
Payoff processing fees ($25-95) are a last-time charge when the loan is paid off via sale or refinance. Reconveyance and recording at payoff are separate line items from the servicing fee.
How to Use
- Enter loan amount.
- Pick servicer type.
- Enter monthly fee and/or annual percentage of balance.
- Enter payoff processing fee and planned hold.
Frequently Asked Questions
Is servicing separate from interest on a mortgage?
Usually no — residential mortgage servicing is baked into the rate. Seller-carry and non-QM loans often charge servicing separately. Confirm on your note and disclosures.
Can servicing transfer mid-loan?
Yes, and frequently does. Federal law requires 15-day written notice. Your terms don't change; only the entity you pay. Keep the new payoff address, payment method, and phone number in your records.
Who does seller-carry servicing?
Companies like Allegro, FCI Lender Services, and Evergreen Note Servicing. Fees run $15-40/month. Worth it to keep payments out of the principals' hands and maintain audit-quality records for taxes.
Related Calculators
Seller Carry Calculator
Owner-financed note mechanics.
Late Payment Fee Calculator
Late-fee structures.
Servicing Transfer Payment Change Calculator
Payment changes after servicer transfer.
Escrow Calculator
Escrow component of servicing.
Loan Origination Fee Calculator
Origination vs servicing.
Daily Interest Calculator
Interest detail.
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