Exit Fee

Exit Fee is a charge collected at payoff (sale, refinance, or maturity), distinct from prepayment penalty. Some programs structure pricing as low origination + meaningful exit (e.g., 1 point in + 1 point out); others charge no exit and load fees at origination. Exit fees compound the total cost of capital for shorter holding periods. Worth reading the term sheet carefully — exit fees are often buried in the fee schedule rather than highlighted in the rate-and-points headline.