Origination Fee- What is it? Closing cost series
The first charge to appear on the Good Faith Estimate is the Origination Fee and it is a rather large amount. The most common charge is 1% of the loan amount, but this can vary depending on the mortgage company you use.
This fee is the mortgage company direct commission. Many people do not realized that is fee is negotiable and end up being over charge by the mortgage company/ loan officer. You can easily talk this down by a few hundreds and in some cases with larger loan amount by a few thousands.
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