Banks don't just earn profits from the interest rates that you pay on the loans, fess and principal payment. They hide many fees and charges from you that are discovered later on but you can do nothing about it and have to pay a lot extra. These hidden charges can boost your interest rates by several points and the amount to be repaid can also increase by these extra charges. Some of such hidden fees are listed below that you must know. Banks don't just earn profits from the interest rates that you pay on the loans, fess and principal payment. They hide many fees and charges from you that are discovered later on but you can do nothing about it and have to pay a lot extra. These hidden charges can boost your interest rates by several points and the amount to be repaid can also increase by these extra charges. Some of such hidden fees are listed below that you must know.

Bank attorney fees

If the bank uses some law firm that is private based and not their own then such fees are taken from you. Many such outside bank lawyers make things even worse. They require some other outsider attorney to be hired by the customer for getting an opinion letter which covers the entire loan transaction. Well most of the times only the strongest borrowers can get these fees eliminated. However, if you have good business with the bank you may be able to get these fees reduced or capped. Sometimes bank provide discounts too.

Restructuring fees

Restructuring of loan can be done at any time but banks will charge you with a fee. An example of this is restructuring of loan from short term to a long term or vice versa. A restructuring fee ranges can range from ½% to 2% and can be more depending upon the banks rules. Other fees such as legal bank fees or other expenses can be charged from you as well. Banks will not remove the out-of-pocket expenses and attorneys fees but may cut other fees.

Non-use fees

These are charged in addition with the commitment fees. These range from ¼% to ½% of the remaining credit. Though these fees aren't that higher as the commitment fees but they definitely increase the interest rate. If there is a competitive environment o the bank then you might be able to get these fees either removed or reduced by some factor.

Appraisal/environmental evaluation fees

These fees are added into your contract when some asset is used for security. The banks bring some outside expert to see the mortgage or the equipment to make sure that it has good market value. Since the banks bring an outside part so these fees tend to get higher then expected. Banks will not remove these fees just like the attorney fees and these will be charged from you. The best thing to do here is to get these splited or capped by doing some negotiations.

Late charges

These fees are charged when some one makes a late payment. Submitting the monthly dues on time is your responsibility and if you are not punctual in doing so, you will have to pay a handsome price for it. You will see many times that a bank due to late or delinquent payments put a 300 basis points on someone's interest rate. You can negotiate to get these charges reduced from 75 to 150 basis points above the interest rate. Best way of dealing with this fee is to make timely payments.