guarantee fee

Definition

Amount charged by a guarantor, usually as a percentage of an associated sum but sometimes as a fixed fee. For example, a bank may charge a percentage fee to guarantee the payment on a note but may charge a fixed amount for converting a bearer check to a manager's check whose payment is guaranteed by the bank. also called g-fee.

Use guarantee fee in a sentence

There was a guarantee fee and he knew that had to pay it in full and it was something really interesting.

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You should try and make sure that you are prepared to pay the guarantee fee and factor it in to your budget.

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Guarantee Fees are charged by mortgage-backed securities (MBS) providers, such as Freddie Mac and Fannie Mae, to lenders for bundling, servicing, selling and reporting MBS to investors.

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guarantee guarantee fees