What is a normal origination fee on a mortgage?

Somewhere between zero and about 1% of the loan amount is common. On a $380,000 loan that is $0 to about $3,800, and many lenders charge a flat fee of roughly $1,000 to $2,000 instead. It sits in Section A of the Loan Estimate, called Origination Charges, and it is the part of the price that varies most from lender to lender. The way to find out if yours is high is a second Loan Estimate for the same loan on the same day.

Can the origination fee change at closing?

Not on its own. The lender's own charges in Section A of the Loan Estimate cannot go up on the Closing Disclosure unless something about the loan changes, such as the loan amount, the property value or your credit. If the fee is higher at closing with no such change, ask the lender to explain it; the rule is on your side.

Answers · Fees

What's a normal origination fee?

Q: Is a 1% origination fee too high?

It is at the high end of common, and on a $380,000 loan it is $3,800. It is not automatically a bad deal: a lender charging 1% with a lower rate can beat a lender charging nothing with a higher rate. Compare the fee and the rate together, or use the In 5 Years box on page 3 of the Loan Estimate, which blends them.

Q: Is a no-origination-fee mortgage a better deal?

Sometimes. A lender that charges no origination fee usually earns it through a slightly higher rate instead. That can be the better deal if you will sell or refinance within a few years, and the worse deal if you keep the loan a long time. Divide the fee you would avoid by the extra monthly payment to find the break-even month.

Updated November 2026 · All math shown, every dollar figure is an example

Somewhere between zero and about 1% of the loan is common. On a $380,000 loan that is $0 to about $3,800, and many lenders charge a flat fee of roughly $1,000 to $2,000 instead. It sits in Section A of your Loan Estimate, "Origination Charges," and it is the part of the price that varies most from lender to lender. A second quote for the same loan on the same day is how you find out if yours is high.

What the origination fee is

The origination fee is what a lender charges for making your loan: taking the application, checking your file, and getting it to closing. Some lenders charge it as a percent of the loan amount, some as a flat dollar fee, and some charge nothing at all and earn it through a slightly higher rate instead. Every lender shows it the same way, on page 2 of the Loan Estimate, the three-page form you get within three business days of applying.

Where it lives: Section A

Section A is the top of page 2 and it is headed "Origination Charges." Everything in it is money going to the lender itself. The lines you may see:

Line in Section A	What it is	Changes your rate?
Origination fee	The lender's charge for making the loan	No
Underwriting fee	Reviewing your file and deciding	No
Processing / application fee	Paperwork and setup	No
"x% of Loan Amount (Points)"	Interest you prepay for a lower rate	Yes, that is its whole job

The names differ from lender to lender. One lender's $1,495 "origination fee" is another's $495 origination plus $995 underwriting. Add up the whole section and compare the total. Points are the one line to pull out, because they buy something (a lower rate) that the other lines do not. Are mortgage points worth it? covers that math.

What counts as normal

Zero. Real, and common among lenders that advertise "no lender fees." The cost is usually in the rate, often an eighth to a quarter of a percent higher.
A flat fee, roughly $1,000 to $2,000. The most common shape today. It does not grow with the loan.
Up to about 1% of the loan. The high end of common. On $380,000 that is $3,800. Beyond 1% is unusual and worth a second quote.

What is normal for you also depends on the loan. Small loans often carry a higher fee as a percent, because the lender's work is the same. Some loan types and some brokers show their pay as a percent of the loan in this section.

Why this is the number to watch

Two reasons. First, it is where lenders differ. The appraisal, title work, taxes and recording fees further down page 2 are set by other people and land close to the same whoever lends. Section A is the lender's own price. Second, it is protected. The lender's own charges cannot go up between the Loan Estimate and closing unless something about the loan changes, such as the amount, the property value or your credit. If the fee grows with no such change, you can ask the lender to explain it.

The worked example (illustrative)

Two Loan Estimates for a $380,000, 30-year fixed loan on the same day. The figures are made up to show the math.

Lender	Rate	Section A total	Monthly P&I
Lender 1	6.625%	$995	$2,433
Lender 2	6.625%	$3,200	$2,433
Lender 3	6.500%	$3,200	$2,402

Lender 1 against Lender 2 is the easy case: same rate, same payment, $2,205 less up front. Lender 1 wins outright, with no break-even to think about. Lender 3 is the real-world case: it charges the same $3,200 but gives an eighth of a percent back in rate, which saves about $31 a month. Divide the $2,205 extra by $31 and Lender 3 needs about 71 months, nearly six years, to catch Lender 1. Keep the loan longer than that and Lender 3 wins; most people do not.

break-even months = extra Section A ÷ monthly savings = $2,205 ÷ $31 ≈ 71

Try your own pair in the breakeven calculator.

Can you get it lowered?

You can ask, and a second Loan Estimate in your hand is what makes the ask real. Lenders know their Section A is the line a shopper compares, and a lender who wants the loan can rewrite it. To be clear about what we do: comparemyloan does not negotiate with your lender, lock your rate or take an application. We show you whether another lender's price beats the one you have, and you decide what to do with that.

Questions people ask

Is a 1% origination fee too high?

It is at the high end of common. It is not automatically a bad deal: a lender charging 1% with a lower rate can beat a lender charging nothing with a higher rate. Compare the fee and the rate together, or use the "In 5 Years" box on page 3, which blends them. How to compare two Loan Estimates shows where to look.

Is a no-origination-fee mortgage a better deal?

Sometimes. The lender usually earns the fee through a slightly higher rate instead. That is better if you will sell or refinance within a few years and worse if you keep the loan a long time. Divide the fee you avoid by the extra monthly payment to find the break-even month.

Are points part of the origination fee?

They share Section A, but they are different things. Points are prepaid interest that buys a lower rate; the origination fee buys nothing but the loan. Some lenders label their origination fee "origination points," so read what each line does, not what it is called.

Only have one quote? That's the problem.

Tell us the rate and the fees you were quoted. It is free, there is no credit pull, and nobody calls you. We check whether another lender beats it, fees included. The free Loan Estimate checker reads your Section A first and flags anything out of the ordinary.

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Figures are illustrative principal-and-interest math at the stated rates and terms; they exclude taxes, insurance, and PMI, and are not a loan offer, approval, commitment to lend, or Loan Estimate. Fee ranges are general observations, not a survey, and your actual rates and fees depend on qualification with lenders. comparemyloan does not negotiate with lenders, lock rates, or take loan applications.