origination charge

USAGE SUMMARY

The phrase "origination charge" is correct and usable in written English.
It is typically used in financial contexts to refer to a fee charged for processing a loan or mortgage application. Example: "The bank informed me that there would be an origination charge associated with my loan application."

✓ Grammatically correct

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

1 human-written examples

That document, called the Good Faith Estimate, lists various mortgage fees, like the loan origination charge and transfer taxes, as well as third-party expenses, like fees for inspections and title insurance, which protects the borrower against any undetected problems with the deed to the property.

The New York Times

Human-verified similar examples from authoritative sources

Similar Expressions

59 human-written examples

They include a rule, proposed by the bureau in August, that would require lenders to also offer a loan with no upfront origination charges, when they offer a loan that does include upfront charges.

The New York Times

This being said, many lenders may charge the full allowed amount for origination charges, and consumers must shop around.

Forbes

Origination charges for smaller lenders may be much less, and some might even provide credits rather than charges for the origination fee as they earn revenue primarily by originating loans to sell on the secondary market rather than through charging origination fees.

Forbes

The price of your monthly payment depends on several factors, including the amount of your original loan (your principal), interest rates and loan origination fees charged by the mortgage lender.

Forbes

In the past five years, Wells Fargo has been sued another 55 times for charging abusive mortgage default fees, submitting false and misleading court documents, processing unlawful foreclosures, mortgage appraisal and origination fraud, charging military veterans with hidden and illegal fees, robo-signing of mortgage documents, and other illegal acts.

Huffington Post

A loan origination fee charged by the lender is not deductible.

The New York Times

Draw fees are comparable to origination fees, charged as a percentage.

Forbes

Originators always charge the maximum origination fee allowed by law, regardless of how much they are making on the transaction.

Huffington Post

Lenders often charge origination fees, and you have to pay mortgage insurance.

The New York Times

Few conventional lenders charge origination fees of more than 2 points on a loan -- that is, 2percentt of the total amount borrowed.

The New York Times

Expert writing Tips

Best practice

When discussing loan costs, be transparent and clearly label "origination charge" to avoid confusion. Provide a breakdown of what this charge covers for better clarity.

Common error

Don't assume borrowers automatically know what an "origination charge" covers. Explicitly state whether it includes underwriting, processing, or other administrative costs to avoid disputes.

Linguistic Context

The phrase "origination charge" functions as a noun phrase, specifically referring to a fee. It's used to identify a specific cost associated with obtaining a loan, as illustrated by Ludwig's examples.

Expression frequency: Rare

Frequent in

News & Media

50%

Formal & Business

30%

Academia

20%

Less common in

Wiki

0%

Science

0%

Reference

0%

Ludwig's WRAP-UP

The phrase "origination charge" denotes a fee levied by lenders for processing loan applications, as highlighted by Ludwig. While grammatically sound, its frequency is rare. It appears primarily in news and business contexts. To ensure clarity, especially for borrowers, always clearly define the components of an "origination charge". As Ludwig AI states, the phrase is correct and usable in written English within financial contexts, referring to a fee charged for processing a loan or mortgage application. For alternatives, consider "loan processing fee" or "application fee" for improved readability.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

loan origination fee

This alternative is more specific by explicitly mentioning the word 'fee'.

loan processing fee

This alternative emphasizes the 'processing' aspect of the fee.

mortgage origination fee

This specifies that the charge is specifically for a mortgage.

upfront fee

This focuses on the timing of the charge (paid at the beginning).

initial fee

This emphasizes the charge being at the beginning of the process.

application fee

This refers to the fee associated with the application process.

underwriting fee

This is related to one of the processes involved in granting a loan.

administrative fee

This focuses on the administrative tasks associated with the loan.

service charge

A more general term for a fee for a service.

brokerage fee

This implies the fee is charged by a broker facilitating the loan.

FAQs

What does "origination charge" mean?

An "origination charge" is a fee charged by a lender for processing a loan or mortgage application. It covers the lender's administrative costs in setting up the loan.

How can I lower my "origination charge"?

You can try to negotiate with the lender, shop around for lenders with lower fees, or improve your credit score to qualify for better terms.

Is the "origination charge" tax deductible?

The deductibility of an "origination charge" may depend on the specific type of loan and applicable tax laws. Consult a tax advisor for personalized advice.

What's the difference between an "origination charge" and "points"?

While sometimes used interchangeably, "points" are typically a percentage of the loan amount paid upfront to reduce the interest rate, while an "origination charge" covers administrative costs.