The Difference Between Discount Points & Origination Fees The Difference Between Mortgage Origination Fee and Understanding Origination Fee and Points in Mortgage What Are Mortgage Loan Points? | ;· Mortgage loan origination fees are charges from the mortgage company to help cover their operating costs for processing a loan. Unlike discount points, origination fees are not reliant on the current mortgage market. The cost varies from lender to lender, which is important to keep in mind when analyzing loan estimates from different mortgage companies. When Are Points Worth It? The benefit of paying points on a loan …06/12/2018 · Loan origination fees or points cover the mortgage company’s costs in processing the loans. They serve to pay closing costs, and the rate of payment is negotiable. The number of origination points a company charges varies from lender to lender, so it’s an important question to ask when shopping around for the top mortgage ;· The loan origination fee is the commission charged by the bank or the loan officer for working on your loan, where on the other hand discount points are used to buy down your interest rate. It’s an important distinction because the loan origination fee pays for the costs of …Origination points. Origination points are a fee charged by the lender to compensate the loan officer. An origination fee is charged based on a percentage of the loan amount. Typically, this range is anywhere between – 1%. For example, on a $200,000 loan, an origination fee of 1% would be $2,000. Mortgage Points vs. No ;· The origination fee vs. points comparison given below will try to explain these two terms. Origination Fee. It is an amount that is paid to the lender or the organization handling your mortgage while originating your loan process. It varies from lender to lender and is expressed in points. Points. It is just 1% of the total mortgage ;· Answer by Dan Persfull: You have Origination Fee points and you have Loan Discount points - points primarily refers to what percentage of the loan will be charged for either the Origination Fee or the Loan Discount, …

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