The origination fee is a fee that is paid to the bank or your loan broker for his or her services in originating the loan.

Broker or loan origination fee is paid to the person handling your loan application. This fee can be a set price or can be stated as percentage of your loan amount. The origination fee can be located at the top of your good faith estimate and should be disclosed within 3 days after applying for a home loan.

Most points are paid to receive a lower interest rate from the lender/broker. The difference in savings over the life of the loan can make paying points a benefit to the borrower.

If you intend on staying in your home for an extended period of time, it may be worthwhile to pay additional points in order to obtain a lower interest rate.

Any significant changes in fees should be disclosed in the final GFE.

Origination fees are charged by the lender or Broker and are expressed as a percentage of the loan amount. They must be disclosed on the Good Faith Estimate and on the final closing papers, commonly called the HUD.

An origination fee is charged by a lender for processing the loan, expressed as a percentage of the mortgage amount. It’s normally one percent of the loan amount.

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