 TITLE: Understanding Loan Origination Fees CONTENT: How to Minimize Origination Fees\n--------------------------------\nOrigination fees are set by lenders, and there's no rule that dictates how much they should charge or even requires an origination fee in the first place. As a result, you may be able to get a lower fee than you're originally quoted. (The only exception is federal student loans, whose fees are not negotiable.)\nLegitimate lenders disclose their fees upfront; if you're not happy with the quoted origination fees, here are some ways you can try to lower them.\n*   **Negotiate.** If you have good to excellent credit, you may be in a position to negotiate a lower origination fee. Keep in mind, however, that this generally requires a tradeoff. To get a reduced origination fee, you may have to agree to a higher interest rate or a longer loan term—both of which typically increase the overall total cost of the loan.\n*   **Shop around.** Before applying for a loan, compare various lenders' average origination fees. Lenders sometimes offer low or no origination fees to make their loans more appealing to borrowers. However, be sure to consider interest rates, loan terms and other fees—not just origination fees—to evaluate the overall cost of the loan.\n*   **Ask for seller concessions.** If you're buying a home, see if you can get the seller to pay your origination fees. This tactic works best in a buyer's market in which home sellers are having problems finding buyers.\n*   **Get lender credits.** Mortgage closing costs can run into several thousand dollars. Some mortgage lenders offer credits to cover these costs. The amount of the credits is rolled into your mortgage balance. You'll pay higher interest rates in return for lender credits. However, depending on the size of your mortgage, it may be advantageous to put the money you would have spent on closing costs toward your down payment instead. END