What Is Loan Origination Fee?
A loan origination fee is a charge from the lender for processing a new loan application, typically expressed as a percentage of the loan amount.
Example
A 1% origination fee on a $350,000 loan costs $3,500.
Try it: Loan Origination Fee with your own numbers
Interactive and illustrative: change any value and the results update instantly in your browser. The figures come from the same engines as REAIXO's full calculators.
Closing costs: what you pay for at the closing table
Closing costs are a mix of lender charges, title and settlement services, government fees and prepaid bills for your own taxes and insurance.
- Estimated closing costs
- $16,037
- 4.0% of the price
- Typical range
- $13,792 – $18,282
- Cash needed with down payment
- $56,037
- Loan $360,000
- Lender charges$2,475
- Title and settlement$3,750
- Government charges$4,250
- Prepaids and escrow (your own future bills)$5,562
Show the numbers as a table
| Item | Group | Amount |
|---|---|---|
| Origination | Lender charges | $1,800 |
| Appraisal | Lender charges | $600 |
| Credit report | Lender charges | $75 |
| Title insurance | Title and settlement | $2,000 |
| Settlement fee | Title and settlement | $650 |
| Attorney fees | Title and settlement | $750 |
| Other fees | Title and settlement | $350 |
| Recording fees | Government charges | $250 |
| Transfer tax (buyer share) | Government charges | $4,000 |
| Prepaid property tax | Prepaids and escrow (your own future bills) | $1,600 |
| First-year homeowners insurance | Prepaids and escrow (your own future bills) | $1,200 |
| Escrow deposit | Prepaids and escrow (your own future bills) | $1,800 |
| Prepaid interest | Prepaids and escrow (your own future bills) | $962 |
Formula
Closing costs = Lender charges + Title and settlement + Government charges + Prepaids and escrowAssumptions
- National-average fee schedule from the Closing Cost Calculator; transfer taxes and title rates vary widely by state and county.
- Your Loan Estimate lists the real figures; compare it line by line.
Why it matters
It's one of the larger lender fees on a Loan Estimate — comparing origination fees across lenders is one of the most direct ways to comparison-shop total loan cost.
Compare and common questions
Related Terms
More Financing Terms
This definition is provided for general educational purposes and is not financial, legal, tax, or real estate advice. Verify important decisions with appropriately qualified professionals.
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