LENDING GLOSSARY
Origination Fee
Origination Fee
A fee charged for processing and originating financing.
What does Origination Fee mean?
A fee charged for processing and originating financing. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
Origination Fee in context
A 1% origination fee on a $1 million loan equals $10,000.
Why it matters in financing
Origination Fee can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related lending terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.