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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.
Learn everything you need to know about this fee including how to avoid paying loan origination fees. What Is a Loan Origination Fee? A home loan origination fee is a fee your lender charges for underwriting your mortgage â it includes verifying your identity, checking your credit and preparing all of your paperwork.