Definition
An origination fee is an upfront charge assessed by a lender for processing a new loan application. It covers the costs of underwriting, evaluating the borrower's credit, and funding the loan.
Algorithmic Impact
Origination fees are typically deducted from the total loan amount disbursed. For example, a 5% origination fee on a $10,000 loan means you will receive $9,500 in your account. Our algorithmic match emphasizes lenders with transparent or zero origination fees.