Understanding Origination Fees (USA Context):

A mortgage origination fee is an upfront fee charged by a lender for processing a new loan application and creating the loan. It typically covers administrative costs, underwriting, and other services involved in setting up your mortgage.

• Fees often range from 0.5% to 1% of the total loan amount but can vary by lender, loan type, and borrower qualifications. Some lenders may charge a flat fee.
• This fee is usually part of your total closing costs and is detailed in the Loan Estimate and Closing Disclosure documents provided by your lender.
• Origination fees may sometimes be negotiable, or lenders might offer "no-origination-fee" loans, which could, in turn, have a slightly higher interest rate. Always compare the total loan costs.

This calculator provides an estimate. Always refer to official documents from your lender for actual fee amounts. This is not financial advice.