verb (used without object), prorated, prorating. 1. to make an arrangement on a basis of proportional distribution. verb (used with object), prorated, prorating. 2. to divide, distribute, or calculate proportionately. Origin of prorate.
Origination charge: The VA allows lenders to charge up to 1 percent of the loan amount to cover origination, processing and underwriting costs. They can choose to either charge you a flat 1 percent origination fee, or pick and choose among a host of fees, so long as they add up to no more than 1 percent.
Lenders may charge an origination fee of up to $6,000 for these loans. For homes worth less than $400,000, the maximum origination fee for these loans is calculated on a sliding scale between $2,500 and $6,000, depending on the value of the home.