how to save on origination fees
mortgage origination fees can be negotiable but a lender cannot and should not be expected to work for free obtaining a reduced origination fee usually involves conceding something to the lender the most common way to lower the fee is to accept a higher interest rate in return effectively the lender earns its commission from the ysp instead of the origination fee this is executed through something called lender credits they are calculated as negative points on a mortgage 3 as a general rule this is a good deal for borrowers only if they plan to sell or refinance within a few years on longer mortgages what you cumulatively pay in interest will generally outstrip what you would have paid in an origination fee if you plan to refinance consider working with one of the best mortgage refinance companies to ensure you re getting a good deal you can negotiate to have the home seller pay your origination fees this is most likely to happen if the seller needs to sell quickly or is having trouble selling the home you can also negotiate with the lender to have the origination fee reduced or waived this may not involve accepting a higher interest rate if for example you have shopped around and can present evidence of a better offer from a competing lender also if the mortgage is for a large amount and a long term and you have excellent credit and a safe source of income a lender may find your business attractive enough to go easy on fees finally always make sure to look at what exactly constitutes the origination fee some lenders bundle other fees such as application and processing fees into it if that is the case ask to have those bundled fees waived 