📌 Key Takeaway: Lender fees typically run 0.5-1% of the loan amount in origination charges, plus optional discount points (1% of the loan amount per point, each usually lowering your rate by about 0.25 percentage points).
Common Lender Fees
| Fee | Typical Cost |
|---|---|
| Origination fee | 0.5-1% of loan amount |
| Discount points (optional) | 1% of loan amount per point |
| Underwriting fee | $400-$900 |
| Rate lock extension | Varies, often $0-500 |
Discount Points: Are They Worth It?
Paying for points makes sense when you plan to keep the loan long enough to hit the break-even point — divide the point's cost by your monthly savings to find how many months until it pays off.
What's Negotiable
- Origination fees can sometimes be reduced or waived, especially for strong-credit borrowers.
- Some fees can be shifted into a slightly higher rate instead of paid upfront (a 'no-cost' structure).
- Third-party fees like appraisal and title costs are typically not lender-negotiable.
This page is for educational purposes and isn't personalized financial or tax advice. Figures, rates, and program details change frequently — confirm current terms directly with lenders, tax professionals, or the IRS before acting.