Final answer:
The fee levied by your lender that represents prepaid interest on your mortgage loan is the Origination fee.
Step-by-step explanation:
The fee levied by your lender that represents prepaid interest on your mortgage loan is the Origination fee. This fee is typically a percentage of the total loan amount and is charged by the lender for processing the loan application and underwriting the loan.
An origination fee is a charge imposed by a lender to cover the costs associated with processing a loan application. This fee is typically associated with mortgage loans, personal loans, and other types of financing. The origination fee is meant to compensate the lender for the administrative costs and effort involved in underwriting, processing, and approving a loan. It is a one-time fee paid by the borrower at the beginning of the loan process.