origination fee

American

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

noun

Finance.

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.

Etymology

Origin of origination fee

First recorded in 1960–65

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

There’s also a 4.228% origination fee for these loans, which is deducted proportionately from each loan disbursement.

From MarketWatch • May 15, 2026

WSJ | Buy Side: Some personal loans charge no origination fee, but compare interest rates and other terms to get a good deal.

From The Wall Street Journal • Apr. 1, 2026

But yeah, the bankers, they got a big origination fee.

From Slate • Jul. 12, 2022

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 • Apr. 4, 2022

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 • Apr. 1, 2022

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023