Loan Origination Fee

Definition: A loan origination fee is a charge for arranging, processing, underwriting, or making a loan, as defined in the applicable disclosures and rules.

Example

A Loan Estimate lists an origination charge in the section for costs paid to the lender.

Keep the distinction clear

An origination fee is not the same as a discount point paid for a lower interest rate. Compare the disclosed charges and loan terms rather than judging only one fee.

Related terms

Discount Points · Underwriting · Annual Percentage Rate (APR)

Keep studying

Loan Estimate, Closing Disclosure, and Loan Approval: Different Steps

References: CFPB: mortgage key terms

Pronunciation (US): lohn uh-rij-uh-NAY-shuhn fee (capitals show stress)

Pronunciation reference: Merriam-Webster