Final answer:
A mortgage origination fee is an upfront fee charged by a lender to process a new loan application. It is typically quoted as a percentage of the total loan and can range from 0.5% to 1%. This fee compensates the lender for executing the loan.
Step-by-step explanation:
A mortgage origination fee is an upfront fee charged by a lender to process a new loan application. The fee is compensation for executing the loan. These fees are quoted as a percentage of the total loan and are generally between 0.5% and 1% of a mortgage loan in the United States.