Charges by a lender to process and close a loan application.
An origination fee is a charge by a lender to close a loan application. A point is a one-time closing cost for a lower interest rate. Lenders may charge borrowers origination fees and/or points, but this should always be made clear upfront. JVM Lending does not charge origination fees.
Origination fees can be expressed as a percentage of the loan amount or as a flat fee amount. Points are always expressed as 1% of the loan amount. For example, one point on a $500,000 loan amount will be $5,000.