home buying tips

Home Buying Tips – What Is an Origination Fee? How Much Does It Cost?

By Heath Olinger

During the process of buying a home you’re going to encounter more than one fee including an origination fee but the big question is what exactly is this fee and how much does it cost?

About the Origination Fee

In basic terms, an origination fee—sometimes referred to as a discount fee—is money that a lender or bank charges a client to complete a loan transaction. An origination fee can encompass a variety of different fees added together, says Mark Ventrone, owner and broker with ABLEnding, based in California and Arizona. It can include underwriting fees, administrative fees, processing fees, discount fees (also known as points), and any other fee charged by the lender and/or broker to the borrower.

Origination fee vs. points

Lenders generally speak about the money associated with origination fees as points. The term “point” is slang for 1% of the loan amount; 1 point = 1%. And points are part of those aforementioned closing costs charged by your lender, calculated as a percentage of the principal, says Casey Fleming, author of “The Loan Guide: How to Get the Best Possible Mortgage.”

Buy A Home in Dallas Texas

Planning on buying a home in Dallas Texas? If so, contact me Heath Olinger, Realtor® with Rogers Healy and Associates by calling me a (214) 238-8589 or click here to connect with me online.


Dallas Texas Realtor

Things First Time Home Buyers Don’t Consider

Growing up in Tarrant County and later moving to Dallas County, Heath is well versed in the Dallas-Fort Worth Metroplex. After graduating from Southwest Texas State University, and then receiving his MBA, he wasn’t fulling his passion of remodeling houses and finding the next person to call it home. After remodeling a few house on his own, he decided to take it to the next level and help others find their dream homes to accomplish their goal of calling it home. “I really want to be the Real Estate Professional that remembers the agony of waiting to hear back from buyers or sellers on a sale and ensure communication is fulfilled along the way, the waiting can be torture when you are excited for your next buy or sell”. Dedication, professionalism and the “can do attitude” are all the traits you will find in Heath.

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