lánagjöld

Lánagjöld is an Icelandic term that translates to "loan costs" or "interest and fees" associated with a loan. It encompasses all the expenses a borrower incurs beyond the principal amount of the loan. This typically includes interest payments, which are the cost of borrowing money, and various fees charged by the lender.

These fees can vary widely and might include origination fees, application fees, appraisal fees, processing fees, late payment fees, or prepayment penalties. The specific lánagjöld will be detailed in the loan agreement. Understanding the total lánagjöld is crucial for borrowers to accurately assess the true cost of borrowing and compare different loan offers.

The effective annual interest rate (EAR) or annual percentage rate (APR) are common metrics used in many countries to represent the total annual cost of a loan, including both interest and certain fees, thus providing a more comprehensive picture of the lánagjöld. Lenders are generally required to disclose these costs to borrowers.