origination fee

American  

[aw-rij-uh-ney-shuhn fee, o-rij‐] / ɔˌrɪdʒ əˈneɪ ʃən ˈfi, ɒˌrɪdʒ‐ /

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.

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Etymology

Origin of origination fee

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.

From Seattle Times

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.

From Seattle Times

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

From New York Times

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

From Seattle Times

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.

From Washington Post