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.
Rates and Costs of VA Loans. You can expect this loan program to offer competitive interest rates and reasonable costs. Limited VA Loan Fees. The Department of Veterans Affairs limits the fees that can be charged on VA home loans. Allowable fees include: Origination Fee of 1%. VA Funding Fee (unless exempt) Reasonable Interest Rate Discount Points. VA Appraisal Fee. Credit Report Fee.