Loan Origination Fees
Charge by a lender or broker connected with originating a loan. Different from discount points which are used to buy down the rate of interest. A point is simply one percent of the total loan amount.
Loan origination fee usually varies from 0.5% to 2% of the loan amount, depending whether the loan was originated in the prime or the subprime market.
By showing fee’s as origination fee’s, lenders can actually lower the point total they charge you, while inflating the amount of origination fees’ they charge you.
When dealing with a lender, make sure to ask what the total amount of fees are that are derived from a percentage of the total loan amount.
Good Faith Estimate