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If these fees are insignificant they can be expensed at the time incurred. On larger loans these fees can be materially significant. In these cases, the origination fees associated with the loan can be capitalized and amortized over the life of the loan.
The opposite is also true. Either way, the loan origination fee is negotiable! And it can be offset using a credit, as seen above. If I had to throw out a number, Iâd say the most common origination fee is 1% of the loan amount, which many banks will include in the fine print next to their advertised rates.