what is an origination fee: WHAT IS AN ORIGINATION FEE? - 02/04/11 03:13 PM

An Origination Fee is normally 1% of your loan amount.  For example if you take out a loan for $200,000 your Origination Fee would be $2000.   It is not based on the purchase price.
This fee will cover taking care of documents associated with your loan such as creating, processing and closing your loan. 
Do not confuse this with points they are a different fee all together.  Points are usually associated with paying up front costs to lower your interest rate. 
The government allows you to write off the origination fee in the year that the transaction occurred.  It now … (0 comments)