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.
In our example, 1 percent of a $175,000 purchase is $1,750. Along with that origination fee, lenders can charge VA borrowers discount points and other reasonable fees and charges deemed acceptable by the VA.Those can include things like tax and insurance escrow, appraisal fees and credit reports.n a $175,000 home purchase, youâre talking $3,500 to $8,750. If youâre planning to purchase a home, these arenât costs you can roll into your loan, other than the VA Funding Fee. These costs have to be paid at closing, unlike on a VA refinance.