ShmoopTube

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Finance a la shmoop what is a commitment letter? dear Rebecca it's been fun and

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all but asking me to move in with you was a real turnoff so uh have a nice [Rebecca reading letter]

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life yeah that would be a fear of commitment letter I know that one well

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well so what's a commitment letter then all right well you need dough but you

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don't need it today you need it in six months when construction is finished on

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your cabin by the lake at that point you'll convert your very expensive

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building loan into a normal mortgage well you can go to the bank and for a [Man walks into bank]

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small ish fee get a commitment letter from them which stipulates that assuming

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nothing material changes between now and then you will in fact then get a loan

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for one hundred fifty two thousand dollars at 5 percent fixed interest rate

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for 30 years the bank is then committed to giving you that loan when you know [Contract stamped with committed]

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eventually you need it that way you don't have to worry about your bank you

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know breaking up with you which is nice because it's tough getting

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the It's not you it's me speech from a guy in a bowtie [Man wearing bow tie talking to a man in the bank]

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