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Origination Fee

Mortgage Library: Ask a Mortgage Related Question: Answers: Origination Fee


I want to know how much will be origination fee for 73.000.

B. M.


Hi B.,

The truth is, there is no set fee that an Origination Fee will be. Traditionally, an origination fee is 1% of the loan amount. For $73,000 that would $730. 

There is no rule that the origination must be 1%, and may be anything that the lender wishes to charge. I have seen .5%, 1%, 2%, and I've seen fixed dollar amounts that have no attachment to the loan amount.

The origination fee is one form of compensation the loan provider makes for obtaining a loan. I have seen many lenders make the claim that they don't charge an origination fee, but don't mention that they do charge a discount. Discount is a flexible term as well, since I've seen it used to buy down a rate, but also as pure revenue. It's the item that appears on the line following the origination fee.

I will note that $730. is not very close to the average compensation a loan originator makes on a loan in the metro area. It's not out of the question, but it's below the average which I believe to be near $3,200 for average loans and maybe $1,800 on small loans. I would advise taking into account other revenue sources such as the loan discount, application fee, processing fee, or commitment fee, that may appear when you evaluate offers.


Deron J White
Mortgage Consultant

D. White & Co. LLC
800-590-4483 Office
720-365-0646 Mobile

E-Mail: deron  'at'

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