Origination fee
A fee the lender charges for setting up the loan. Usually shown as a percentage of the loan amount. Often negotiable.
Your Room opens on showings and offers, with everything before the listing already ticked.
Organize my saleFree to set up. Pay once when you list: $89 or $189. 7-day refund.
See how it worksWhere this comes up: on the market
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
In your Room, this word explains itself where it appears.
Your Room defines origination fee in the step you meet it in, beside the document or the date it belongs to. Free to set up, with an agent or on your own.
Organize my saleFree to set up. Pay once when you list: $89 or $189. 7-day refund.