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Origination fee

Index Origination fee

An origination fee,, is a payment associated with the establishment of an account with a bank, broker or other company providing services handling the processing associated with taking out a loan. [1]

9 relations: Bank, Broker, Discount points, HUD-1 Settlement Statement, Interest rate, Loan, Prime rate, Subprime lending, Truth in Lending Act.

Bank

A bank is a financial institution that accepts deposits from the public and creates credit.

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Broker

A broker is an individual person who arranges transactions between a buyer and a seller for a commission when the deal is executed.

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Discount points

Discount points, also called mortgage points or simply points, are a form of pre-paid interest available in the United States when arranging a mortgage.

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HUD-1 Settlement Statement

The HUD-1 Settlement Statement was a standard form in use in the United States of America which was used to itemize services and fees charged to the borrower by the lender or broker when applying for a loan for the purpose of purchasing or refinancing real estate.

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Interest rate

An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed (called the principal sum).

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Loan

In finance, a loan is the lending of money by one or more individuals, organizations, and/or other entities to other individuals, organizations etc.

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Prime rate

A prime rate or prime lending rate is an interest rate used by banks, usually the interest rate at which banks lend to favored customers—i.e., those with good credit.

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Subprime lending

In finance, subprime lending (also referred to as near-prime, subpar, non-prime, and second-chance lending) means making loans to people who may have difficulty maintaining the repayment schedule, sometimes reflecting setbacks, such as unemployment, divorce, medical emergencies, etc.

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Truth in Lending Act

The Truth in Lending Act (TILA) of 1968 is a United States federal law designed to promote the informed use of consumer credit, by requiring disclosures about its terms and cost to standardize the manner in which costs associated with borrowing are calculated and disclosed.

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Redirects here:

Activation fee.

References

[1] https://en.wikipedia.org/wiki/Origination_fee

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