 TITLE: Understanding Loan Origination Fees CONTENT: What Are Loan Origination Fees?\n-------------------------------\nA loan origination fee is an upfront fee charged by a lender to cover miscellaneous costs of making a loan. These might include preparing loan documents, processing your loan application and underwriting the loan (that is, checking your credit to make sure you qualify for the loan).\nSome lenders break out fees for preparation, processing and underwriting separately; others lump them all into the origination fee. Auto loans, mortgage loans, personal loans and student loans often have origination fees. Depending on the type of loan, origination fees may be due upfront as part of your loan closing costs, deducted from your loan proceeds or rolled into the total loan balance to be paid off over time.\nOrigination fees are set before you ever take the loan. If you apply for a mortgage, for example, the lender is required by law to give you a loan estimate that includes information about the cost of your loan, including origination fees and other closing costs. END