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.
Basically the VA origination fee is the mortgage brokerâs profit, to pay for overhead, pay for employees, and otherwise keep the office running and continue to offer VA loans. The most common amount of an origination fee is one percent. On a $200,000 VA loan that would be $2,000.An origination fee can be charged to a VA-qualified borrower in lieu of other charges associated with processing, underwriting and overseeing the loan through the VA approval process.n origination fee is a fee that the VA borrower pays to the VA lender. It is usually expressed as a percentage of the loan amount. But a loan origination fee does not directly lower your rate, unlike a discount fee.