Origination Fee
Lending & MortgagesA charge by a lender for processing a new loan application, typically 0.5-1% of the loan amount.
Example
Example: Suppose you take out a $300,000 30-year fixed mortgage at 6.5%. Understanding origination fee helps you see how your monthly payment of approximately $1,896 is structured — and how this concept affects your total cost over the life of the loan. Use our mortgage calculator to see how origination fee impacts your specific situation.