origination fee

[aw-rij-uh-ney-shuhn fee, o-rij‐]

noun

Finance.

1. a fee charged by a lender for evaluating and processing a loan application, typically a one-time fee taken out up-front as a percentage of the face value of the loan.

Word History and Origins

Origin of origination fee¹

First recorded in 1960–65

Example Sentences

Closing costs typically include an origination fee, home appraisal and title search, among other expenses, and can range from 2% to 6% of the loan amount.

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Personal loans don’t usually require an application or prepayment fee, but some do come with an origination fee of somewhere between 1% and 10% of your loan amount.

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An origination fee to the lender could top out at $6,000, and the lender charges closing fees typical for any mortgage loan.

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Factor in the cost of the origination fee and monthly payment to determine whether you’ll save money over time.

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While the marketing material highlights the low fixed interest rates of the loan, researchers say the loan carries an annual percentage rate of 14.44 percent with a 5 percent origination fee.

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