Glossary
What is Origination Fee?
An origination fee is a charge for processing and funding a loan, usually expressed as a percentage of the loan amount. It is often deducted from the proceeds at funding, which means you receive less than the approved amount while repaying the full amount. Origination fees increase the true cost of a loan and are reflected in its APR. When comparing offers, look at the net amount you will actually receive as well as the stated rate.
Example
A $100,000 loan with a 3% origination fee deducted at funding delivers $97,000 to the borrower.
Related funding
Term Loans: A lump sum with fixed payments for big, planned moves.
Related terms
Non-Recourse FactoringPersonal GuaranteePre-QualificationAll terms
Questions about an offer? Your advisor will explain every term.