FinancingHomebuying Glossary
Origination Fee
A fee lenders charge for processing and underwriting your loan application.
In plain English
The origination fee covers the lender's cost of evaluating, processing, and preparing your mortgage — typically 0.5%–1% of the loan amount. It appears as a line item on your Loan Estimate and Closing Disclosure.
Why it matters
Comparing origination fees across lenders (not just interest rates) is part of shopping for the best overall deal.
Where you'll run into it
Guides and tools on TheBuyingPath that cover origination fee in context.
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