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so what is an origination fee heres a simple definition loan origination is the act of applying and the lender processing a home loan the loan officer addresses this at the start of your loan application process they also sum up this process at the loan closing on top of that lenders apply a loan origination fee for compensation of the service they provide so you may be wondering what does this mean in dollar amount this is contingent on the amount you need to borrow the fee is typically between 0.75 percent and 1.5 percent of the loan amount for instance if your home loan is $300,000 youll pay a fee thats between two thousand two hundred fifty dollars and four thousand five hundred dollars as you can probably already know lenders discuss the loan origination fee at the beginning the lender applies this fee to cover their effort to get you to apply your application process and gathering additional information about your financial journey this information determines whether or not th