What Is an Origination Fee on a Mortgage?
A mortgage origination fee can equal one percent of the loan cost.
The origination fee, according to the Federal Reserve, pays for the work involved in originating the mortgage--the paperwork and number-crunching required to decide if you're a good credit risk and how big a mortgage you can afford. The work includes verifying the information you give the lender about your income, debts and employment and figuring out the maximum size your monthly payment can be. It may also be called an underwriting fee.
Good Faith Estimate
Under federal law, lenders must give anyone who applies for a mortgage a Good Faith Estimate stating the interest rate, the itemized closing costs and an annual percentage rate that translates the combined costs and interest into a percentage rate
over the life of the loan. You can use this to compare the origination fees from different lenders, as well as the total loan costs.
Trending in Your Area
I'm Buzz Leer, your host, for "Living Here: San.
Design Ideas to Separate Two Rooms
Separating two rooms is a great way to give your home.
Ideas for Curtain Styles
Curtains can come in nearly any style you can think of.
How to Choose Bookcase Styles