Origination Fee

Filed Under » , ,
Dictionary Says

Definition of 'Origination Fee'

An up-front fee charged by a lender for processing a new loan application, used as compensation for putting the loan in place. Origination fees are quoted as a percentage of the total loan and are generally between 0.5% and 1% on mortgage loans in the United States.
Investopedia Says

Investopedia explains 'Origination Fee'

An origination fee is similar to any commission-based payment. If a lender takes a 1% fee for originating a loan, they will make $1,000 on a $100,000 loan, or $2,000 on a $200,000 loan. It is likely that the fee rate would be negotiated lower for bigger loans in order to obtain the valuable business.

Articles Of Interest

  1.

    Mortgage Points: What's The Point?

    Learn how to pay less for your home in the long run, or save in the short run.

  2. 6 Reasons To Avoid Private Mortgage Insurance

    This costly coverage protects your mortgage lender - not you.

  3. If my mortgage lender goes bankrupt, do I still have to pay my mortgage?

    Yes, if your mortgage lender goes bankrupt you do still need to pay your mortgage obligation. Sorry to disappoint, but there is no free lunch in this situation. In the event that your mortgage ...

  4. Reverse Mortgage Pitfalls

    Before tapping your home equity, find out what can go wrong.

  5. Watch Out For "Junk" Mortgage Fees

    So many fees are tacked on to a mortgage, that it's easy to pay more than you have to.

  6. Fee-Based Brokerage: Will They Work For You?

    Learn the pros and cons of this type of investing and whether it will work for you.

  7. The Rise And Demise Of New Century Financial

    A case study in how poor planning toppled a subprime mortgage giant.

  8. How Interest Rates Affect The Housing Market

    Understand how rate changes can affect home prices, and learn how you can keep up.

  9. The Diner's Guide To Tipping

    A look at the standards for tipping service staff in some popular vacation destinations, and the rationale for each custom.

  10. Broker Commissions Are Here To Stay

    With two developed nations adopting a firm anti-commission stance, questions have arisen over whether or not the United States should follow suit. Find out why such a development is unlikely.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Yield Elbow

    The point on the yield curve indicating the year in which the economy's highest interest rates occur. The yield elbow is the peak of the yield curve, signifying where the highest interest rates occurred.

  2. Xenocurrency

    A currency that trades in markets outside of its domestic borders.

  3. Wanton Disregard

    A standard of severe negligence. Wanton disregard is a very serious accusation that indicates that a person behaved extremely recklessly.

  4. Ultra ETF

    A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark.

  5. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding stockmade by an acquiring company. A toehold purchase of just under 5%, while not a significant stake in a firm, allows the shareholders a "toe-holds" grip on the company and its decision making.

  6. Samurai Bond

    A yen-denominated bond issued in Tokyo by a non-Japanese company and subject to Japanese regulations.
Trading Center
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=ae34434112c4c061dc76cfeb23f28b05