What is the average origination fee on a mortgage?

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    StellarFi
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    StellarFi
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    A mortgage origination fee is the cost of processing the loan application that the lender charges. Typically, this can be anywhere between 0.5%-1% of the total loan amount. You can sometimes negotiate with the seller or lender to cover a part or all of your origination fee. The fee can include charges for opening the loan, processing the application, and underwriting. 

    According to the Consumer Financial Protection Bureau data, the average origination fee for a single-family income is around $1,852. This could also include additional fees like courier fees, document preparation fees, and tax service processing fees. Mortgage points may also be included in this if you have purchased any to lower your interest rates. 

    You pay the origination fee along with your down payment and other closing costs when you close the loan on your home purchase. Some lenders may also agree to include the origination fee in the loan instead of paying it separately at the beginning of the loan term or when closing the loan.

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StellarFinance, Inc. and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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