Back to Glossary
Origination Fee
January 19, 2023
A mortgage origination fee is a one-time cost imposed by a lender to execute a new loan application. The price is remuneration for carrying out the loan. Loan origination costs are often specified as a percentage of the entire loan and range between 0.5 and 1 percent of a mortgage loan in the United States. Origination fees, sometimes known as "discount fees" or "points" when they equal 1% of the loan amount, pay for services like processing, underwriting, and financing.
Related Topics
Payment and Debt Ratios
Home Value: Appraised, Estimated, Actual
How Much of a Mortgage Payment Goes to Principal
What Do Underwriters Do?
What Does Loan Underwriting Mean
Loan To Value and Down Payments
What is Underwriting in Real Estate?
Homeowner's Guide: DIY Home Improvement