An origination fee is a one-time charge assessed by a lender when you take out a loan. It can range from 0.5% to 1% of the loan amount, so on a $200,000 loan, you could pay between $1,000 and $2,000. There are a few ways to avoid paying an origination fee, including:
Negotiate with the lender. Some lenders are willing to waive the origination fee if you ask. It never hurts to ask, and the worst they can say is no.
Get a loan from a lender that doesn’t charge origination fees. There are a few lenders out there that don’t charge origination fees. You can find these lenders by shopping around and comparing loan offers.
