Origination Fee

A fee paid to a lenderThe lender providing funds for a mortgage. Lenders also manage the credit and financial information review, the property and the loan application process through closing. or brokerA person or firm that acts as an agent between providers and users of products or services, such as a mortgage broker or real estate broker. See also “Mortgage Broker.” to cover the administrative costs of processing a loan application. The origination fee typically is stated in the form of points. One pointOne percent of the amount of the mortgage loan. For example, if a loan is made for $50,000, one point equals $500. is one percent of the mortgageA loan using your home as collateral. In some states, the term mortgage is also used to describe the document you sign (to grant the lender a lien on your home). It also may be used to indicate the amount of money you borrow, with interest, to purchase your house. The amount of your mortgage often is the purchase price... amount.