a fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan
An origination fee, or activation fee, is a payment associated with the establishment of an account with a bank, broker or other company providing services handling the processing associated with taking out a loan. An activation fee is typically a set amount for any account. However, an origination fee usually varies from 0.5% to 2% of a given loan amount, depending on whether the loan was originated in the prime or the subprime market. For example, an origination fee of 2% on a $200,000 loan is $4,000. Discount points are used to buy down the interest rates, temporarily or permanently. Origination fees and discount points are both items listed under lender-charges on the HUD-1 Settlement Statement. Regulation Z was enacted to protect buyers from abusive lending practicing with regards to origination fees and origination fees for mortgages can not be deducted.
The numerical value of origination fee in Chaldean Numerology is: 1
The numerical value of origination fee in Pythagorean Numerology is: 3
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"origination fee." Definitions.net. STANDS4 LLC, 2017. Web. 18 Oct. 2017. <http://www.definitions.net/definition/origination fee>.