What are mortgage origination fees?

Short answerOrigination fees are what the lender charges for creating the loan, shown as a flat fee or a percentage of the loan amount on your Loan Estimate. Typical ranges run from zero to about 1% of the loan, and the fee is negotiable. Always compare the origination charge alongside the rate, since a low rate with high fees can cost more than a slightly higher rate with no fees.

Reviewed by Juan Fernando Romero, NMLS 2557318Updated October 14, 2026

The details

Section A of the Loan Estimate lists origination charges separately, which makes them easy to compare across lenders.

Some lenders advertise no origination fee but build the cost into a higher rate, so compare the APR and total five-year cost too.

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