What is an Origination Fee & Why Do You Have to Pay It?

Abstract

Buying a home often comes with a lot of extra fees and costs. This fee is charged by the lender and generally ranges from 0.5% to 1% of the loan amount. An origination fee is simply a charge by the lender for processing the loan. This fee is generally paid at closing, but may also be rolled into the loan itself. How Can I Waive the Fee? There are a few ways to avoid paying an origination fee. Another is to negotiate with the lender to have the fee waived or reduced. If you're taking out a mortgage, you may be able to avoid the fee by getting a "No-points" loan.