Origination fee
A fee the lender charges for setting up the loan. Usually shown as a percentage of the loan amount. Often negotiable.
Every term like this one lights up in the step you're on.
Free to set up. No credit card.Part 1 of 4
Why a seller cares
The origination fee is a lender's charge to the buyer, and it can appear in your sale as part of the closing costs a buyer asks you to cover. It is a number in the offer, not a surprise later.
Part 2 of 4
A simple example
The buyer's lender charges a 1% origination fee on a $240,000 loan. The buyer asks for $2,400 in seller credits to cover it.
| The ask | What it means for you |
|---|---|
| A credit toward the origination fee | $2,400 off your proceeds at closing |
| No credit | The buyer pays it themselves; nothing changes for you |
A lender's fee becomes your cost only when the offer says so.
Part 3 of 4
What people get wrong
That the seller pays lender fees by default. Any lender fee you pay is a concession you agreed to in the contract.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
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