Financing

Origination Fee (Points)

Lender fee charged to originate a loan, expressed as a percentage of loan amount.

Reviewed 9 August 2026 by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

1 point = 1% of loan. Common 0.5-2 points on investor loans; up to 4-6 on hard money.

Examples

2 points on $200k loan = $4,000 origination fee.

Common mistakes

Comparing rates without comparing points.

Origination Fee (Points)

Plain-English explanation

Examples

Common mistakes

Related questions