Origination Fee


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.

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.


Investment dictionary. . 2012.

Look at other dictionaries:

  • origination fee — see fee 2 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. origination fee …   Law dictionary

  • Origination fee — An origination fee, or activation fee, is a payment associated with the establishment of an account with a bank, broker or other company providing services handling the processing associated with taking out a loan. An activation fee is typically… …   Wikipedia

  • origination fee — noun a fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan • Hypernyms: ↑fee …   Useful english dictionary

  • origination fee — Charge to borrower (of e.g., mortgage loan) to cover costs of issuing loan, including credit and title checks, property appraisals, etc …   Black's law dictionary

  • Origination — The making of mortgage loans. The New York Times Financial Glossary * * * origination o‧rig‧i‧na‧tion [əˌrɪdʒˈneɪʆn] noun [uncountable] 1. FINANCE the process of arranging and supplying a loan, especially a mortgage (= loan for buying a house) …   Financial and business terms

  • origination — The making of mortgage loans. Bloomberg Financial Dictionary * * * origination o‧rig‧i‧na‧tion [əˌrɪdʒˈneɪʆn] noun [uncountable] 1. FINANCE the process of arranging and supplying a loan, especially a mortgage (= loan for buying a house): • the… …   Financial and business terms

  • Origination Points — A type of fee borrowers pay to lenders or loan officers in order to compensate them for the role they play in evaluating, processing and approving mortgage loans. Credit history is one factor that plays a role in the amount of origination points… …   Investment dictionary

  • Loan origination — is the process by which a borrower applies for a new loan, and a lender processes that application. Origination generally includes all the steps from taking a loan application through disbursal of funds (or declining the application). Loan… …   Wikipedia

  • originating fee — /ə rɪdʒɪneɪtɪŋ fi:/, origination fee /əˌrɪdʒɪ neɪʃ(ə)n fi:/ noun US a front end fee charged to cover the costs of dealing with an application for a loan …   Dictionary of banking and finance

  • Aria the Origination — Aria (manga) Pour les articles homonymes, voir Aria (homonymie). ARIA アリア (A …   Wikipédia en Français


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