Origination Fee

A fee paid to a lender to cover the administrative costs of processing a loan application. The origination fee typically is stated in the form of points. One point is 1 percent of the mortgage amount.

The amount charged by a lender to originate and close a mortgage loan. Origination fees are usually expressed in points.

The charge for originating a loan; is usually calculated in the form of points and paid at closing. One point equals one percent of the loan amount. On a conventional loan, the loan origination fee is the number of points a borrower pays.

An origination fee is an amount, usually calculated as a percentage of a mortgage loan or home equity loan, which a lender charges for processing your application. The origination fee may be subtracted from the amount of the loan or you may pay the fee separately.

The fee lenders charge to borrowers to prepare documents, process and close the loan. It is usually stated as a percentage of the loan. In some cases, it may be charged to offset the interest rate, also referred to as a point.