origination fee

USAGE SUMMARY

The phrase "origination fee" is correct and usable in written English.
It is typically used in financial contexts to refer to a fee charged by a lender for processing a new loan application. Example: "Before finalizing the loan agreement, make sure to review the origination fee, as it can significantly affect the overall cost of borrowing."

✓ Grammatically correct

Formal & Business

News & Media

Academia

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

LendKey charges an origination fee on all loans originated, as well as an annual servicing fee.

TechCrunch

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

Huffington Post

§ 36.4528 Vendee loan origination fee.

Cornell University

38 CFR § 36.4528 - Vendee loan origination fee.

Cornell University

Expressed as a percentage, the origination fee paid then varied with the amount of the loan.

The New York Times

The origination fee of $110.00 is deducted from the loan before the funds apply to her charges ($10,250 x.01068 = $110.00 origination fee per semester).

University of California, Berkeley

The origination fee of $110.00 is deducted from the loan before the funds apply to his charges ($10,250 x.01068 = $110.00 origination fee per semester).

University of California, Berkeley

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

The New York Times

A loan origination fee will be deducted from the face value of the loan (currently 4.264%).

Harvard University

How much should I accept in loans to account for the origination fee?

University of California, Berkeley

A loan origination fee will be deducted from the face value of the loan (currently 1.066%).

Harvard University

Expert writing Tips

Best practice

Negotiate the "origination fee" with the lender, as it may be possible to reduce this cost, especially with a strong credit score.

Common error

Don't assume that a low interest rate means a cheap loan. Lenders might compensate with a higher "origination fee". Always look at the overall cost, including all fees, to make an informed decision.

Linguistic Context

The phrase "origination fee" functions as a noun phrase, typically serving as the object of a verb or preposition. It refers to a specific type of fee charged by lenders for processing a loan, as evidenced by Ludwig's examples.

Expression frequency: Very common

Frequent in

News & Media

38%

Academia

33%

Formal & Business

29%

Less common in

Wiki

8%

Reference

0%

Science

0%

Ludwig's WRAP-UP

The phrase "origination fee" is a common and grammatically correct term used in financial contexts to describe a fee charged by a lender for processing a loan. Ludwig AI confirms its usability and provides numerous examples from reputable sources. While alternatives like "loan processing fee" or "application fee" exist, understanding the "origination fee" is crucial for evaluating loan offers and negotiating terms. Be mindful of its impact on the overall cost of borrowing and avoid confusing it with other loan-related charges.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

loan origination charge

Replaces 'fee' with 'charge', a common synonym in financial contexts.

loan setup fee

Uses 'setup' to emphasize the initial nature of the fee.

loan processing fee

Highlights the processing aspect of the fee.

loan application fee

Focuses on the application stage where the fee is incurred.

mortgage origination fee

Specifies the type of loan, narrowing the context to mortgages.

loan commencement fee

Uses 'commencement' to indicate the start of the loan.

initial loan fee

Emphasizes that the fee is charged at the beginning of the loan term.

administrative fee for loan

Describes the fee as covering administrative costs.

lender fee for loan processing

Highlights the lender and the purpose of the fee.

upfront loan fee

Emphasizes the upfront nature of the fee.

FAQs

What does "origination fee" mean in mortgage terms?

In the context of mortgages, an "origination fee" is a charge by the lender for processing the loan. It covers costs such as underwriting and preparing the loan documents.

Is the "origination fee" negotiable?

Yes, the "origination fee" can sometimes be negotiable. It's worth discussing with your lender, especially if you have a strong credit history. You might also consider alternatives like "loan processing fee".

How is the "origination fee" calculated?

The "origination fee" is typically calculated as a percentage of the total loan amount, often ranging from 0.5% to 1%.

Are "origination fee" and points the same thing?

While both "origination fee" and points are upfront charges on a loan, they aren't exactly the same. Points are typically used to buy down the interest rate, while the "origination fee" covers the lender's administrative costs. The "loan setup fee" is also a similar concept.