Mortgage Glossary
Origination Fee
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
An origination fee is a lender charge for processing and underwriting a mortgage, usually 0.5%–1% of the loan amount.
What Origination Fee means
It appears on the Loan Estimate and is negotiable. Some lenders waive it in exchange for a slightly higher rate through a lender credit.
Florida example
On a $400,000 Florida loan, a 1% origination fee is $4,000. A borrower can sometimes trade a no-origination structure for a 0.125% higher rate, which may cost less if they sell or refinance soon.
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