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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

  1. Enter loan amount.
  2. Pick servicer type.
  3. Enter monthly fee and/or annual percentage of balance.
  4. 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.

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