Origination Fee is the lender''s upfront charge for processing and underwriting the loan, expressed as points (1 point = 1% of loan amount) or as a flat dollar fee. Charged at closing, financed off the top from gross loan proceeds. Investor hard money origination typically runs 1-3 points; DSCR rental programs run 1-2 points; brokered files add broker origination on top of lender origination. Distinct from discount points (which buy down the rate) — origination is purely a lender fee.
Costs & Fees