Definition
An origination fee is a lender charge for creating or processing a mortgage.
If you are comparing mortgage options, treat origination fee as one piece of the total cost and risk picture, not a standalone detail.
Why It Matters
It matters because origination fees can affect closing costs and APR.
Simple Example
A 1% origination fee on a $300,000 loan equals $3,000.
How to Use This Term
When you see origination fee on a loan estimate, calculator result, or lender conversation, connect it to three practical questions: how it affects monthly payment, how it affects cash needed now, and how it affects flexibility later.