 TITLE: Understanding Loan Origination Fees CONTENT: Average Cost of Origination Fees\n--------------------------------\nOrigination fees, generally quoted as a percentage of the total loan amount, vary widely. Federal student loan origination fees are set by Congress; fees for most other loans vary depending on the lender, the type of loan you're getting and your creditworthiness. For example, origination fees on a mortgage loan can be less than 1%, while origination fees on personal loans may be as high as 8% depending on your credit score.\nWhile a lower origination fee may sound like a good deal, it's not always your best option. Because origination fees help compensate lenders for making the loan, you might find that a loan with a lower origination fee makes up for it with a higher interest rate. Especially when taking out a large long-term loan such as a mortgage or student loan, a loan with a lower interest rate is usually a better bet, even if it has a higher origination fee. Even a small increase in your interest rate can add up to thousands of dollars over the life of a large loan. END