A fee charged by a lender to process a new loan, typically 0.5–1% of amount.
An origination fee is charged by a lender to process and fund a new loan. For mortgages, origination fees typically range from 0.5% to 1% of the loan amount (on a $300,000 loan, that's $1,500–$3,000). Origination fees cover lender costs: loan processing, underwriting, document preparation, and funding. These fees are disclosed in loan estimate documents. You can shop origination fees—different lenders charge different amounts, and you can negotiate. Some lenders offer "no origination fee" loans but compensate by charging higher interest rates. When comparing loans, consider total cost (interest rate plus fees, amortized over the loan term) rather than just the upfront fee. Even small fee differences matter on large loans like mortgages.