Origination Fee

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.
Search results for

'Origination Fee'

  • Student Loan Rules You Should Know About - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1111/Student-Loan-Rules-You-Should-Know-About.aspx
    ... Loss of Origination Fee Rebate Under 2011 law, students pay a 1% origination
    fee on all Stafford loans and a 4% fee on PLUS loans. ...
  • Watch Out For "Junk" Mortgage Fees

    http://www.investopedia.com/articles/mortgages-real-estate/08/mortgage-closing-costs-fees.asp
    ... Fee, Cost. Application Fee, $75 to $300 (including credit report for each applicant).
    Loan Origination Fee, 1-1.5% of loan amount. Points, 0-3% of loan amount. ...
  • Buying A Home: Close And Become A Homeowner | Investopedia

    http://www.investopedia.com/university/home/home10.asp
    ... The fees you'll see on the good faith estimate, HUD-1 form and closing statement
    will include items such as the loan origination fee, points (if you're paying ...
  • Refund Anticipation Loans Generally A Ripoff

    http://www.investopedia.com/articles/taxes/09/refund-anticipation-loans.asp
    ... To get the loan, you'll be asked to pay a loan origination fee in addition
    to your electronic filing fee. If you choose to accept ...
  • Reverse Mortgage Pitfalls

    http://www.investopedia.com/articles/mortgages-real-estate/08/reverse-mortgage.asp
    ... In fact, according to ReverseMortgage.Org, as part of a reverse mortgage, homeowners
    may be required to pay an origination fee of $2,000 or 2% of the loan ...
  • 10 Legal Business Practices Of Dubious Ethics

    http://www.investopedia.com/articles/economics/12/legal-business-practices-of-dubious-ethics.asp
    ... Then, if the depositor decides to borrow, they can charge a loan origination fee,
    a loan servicing fee, an annual credit card fee and the interest on the ...
  • Student Borrowing: University Payment Plans Vs. Federal Student ...

    http://www.investopedia.com/articles/younginvestors/11/university-payment-plans-vs-student-loans.asp
    ... If you qualify for subsidized loans, you're out the loan origination fee, but
    the government pays your interest while you're in school. ...
  • 4 Alternatives To A Traditional Mortgage

    http://www.investopedia.com/articles/mortgages-real-estate/10/mortgage-alternatives.asp
    ... can be faster, since strict bank requirements can be bypassed, and it's also less
    expensive, since there is no need to pay a mortgage origination fee or other ...
  • Starting A Small Business: Financing Your Business | Investopedia

    http://www.investopedia.com/university/small-business/financing-your-business.asp
    ... a blanket lien on other assets. Expect to pay a loan origination fee and,
    of course, interest. Business loans can offer the security ...
  • Student Loans: Private Loan Consolidation | Investopedia

    http://www.investopedia.com/university/student-loans/student-loans8.asp
    ... you'll want to evaluate the following: Is there an origination fee for
    the balance transfer? Depending on how long it will take ...

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