What is Origination Fee?
An origination fee is a charge by a mortgage lender for processing and underwriting a new loan, typically shown as a percentage of the loan amount.
An origination fee is a charge imposed by a mortgage lender for evaluating, preparing, and underwriting a loan. It is part of the closing costs and may be expressed as a percentage of the loan amount or a flat fee. Borrowers encounter it on the Loan Estimate and Closing Disclosure. Watch for how the fee compares across lenders, as it can vary. Some lenders may waive or reduce it in exchange for a higher interest rate. Understand what services the fee covers and whether it is negotiable. It is separate from discount points and other third-party fees.
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