Typical closing fees associated with C-PACE financing can vary but generally include several components:
- Origination Fees: Many C-PACE lenders charge an origination fee, often around 1% of the loan amount.
- Third-Party Fees: These include fees for assessments, energy audits, and other third-party reports required during the underwriting process. These costs can add up quickly for larger deals.
- Closing Fees: Some programs specify a closing fee, such as 1.25% of the sum of eligible costs financed, excluding capital provider closing fees and capitalized interest.
- Capitalized Interest: Although not a direct closing fee, interest starts accruing from the closing date on the full loan amount, which increases the upfront cost of capital.
- Other Potential Expenses: Additional expenses may include legal fees for negotiation and documentation, as well as any local administrative fees required by the jurisdiction.
These fees are crucial to consider when evaluating the cost effectiveness of C-PACE financing.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-typical-closing-fees-associated-with-c-pace-financing/
