Definition
A lender charge for processing a new loan, usually stated as a percentage of the loan amount.
Example
A 0.5% origination fee on a $420,000 loan was $2,100.
Related terms
- Acceleration Clause
- Accrued Interest
- Adjustable Rate Cap
- Adjustable-Rate Mortgage
- Amortization
- Annual Percentage Rate
Frequently asked questions
What does Origination Fee mean in real estate?
A lender charge for processing a new loan, usually stated as a percentage of the loan amount.
How is Origination Fee used in practice?
A 0.5% origination fee on a $420,000 loan was $2,100.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.