Loan Origination Fees

The origination fee is a fee that is paid to the bank or your loan broker for his or her services in originating the loan.

Origination fees are often built into the loan amount.

Most banks/brokers charge an Origination Fee. As the name implies, it is a fee necessary to make the loan happen. Some loan structures also call for Discount Points. Discount Points differ from Origination Fees in that Discount Points are used to buy down the interest rates, temporarily or permanently. Origination Fee and Discount Points are both items listed under lender-charges on the HUD-1 Settlement Statement.

Broker or loan origination fee is paid to the person handling your loan application. This fee can be a set price or can be stated as percentage of your loan amount. The origination fee can be located at the top of your good faith estimate and should be disclosed within 3 days after applying for a home loan.

Most points are paid to receive a lower interest rate from the lender/broker. The difference in savings over the life of the loan can make paying points a benifit to the borrower. If you intend to stay in your home for an extended period of time, it may be worthwhile to pay additional points in order to obtain a lower interest rate.

Any significant changes in fees should be redisclosed in the final GFE.

Origination fees are charged by the lender or Broker and are expressed as a percentage of the loan amount. They must be disclosed on the Good Faith Estimate and on the final closing papers, commonly called the HUD.

In order for any lender to originate a loan without an origination fee, the interest rate must be higher to make up for that loss of revenue.

Do you process and underwrite in-house?

Available Mortgage Loan Products

Purchase Transactions including first and second trust mortgages
Refinance Transactions for Rate and Term as well as Cash-Out Refinances
Stand-Alone Second Mortgages (Home Equity Loans -HELOAN and Home Equity Lines of Credit -HELOC)
Construction Loans
Government Loans such as VA and FHA

Where can I get some Information?

 

On this web page you can subscribe to, or unsubscribe from our mailing list.

Yes, I want to become a member of the mailing.
Please remove me from mailing list.
Enter your e-mail address:

Please confirm your e-mail address:

FDIC Equal Housing Lender.  Jacob Dean Mortgage 1604 Spring Hill Rd, Second Floor, Vienna, VA 22182. Licensed by the NH Banking Department; Licensed Mortgage Banker, NJ Department of Banking & Insurance; Licensed Mortgage Broker, NYS Banking Department; Licensed by the PA Department of Banking.