Loan origination fee
This fees pays for the collection of a book of documents detailing the financial history of the borrower. This information makes it possible for the loan originator to sell the mortgage to others. Resale transfer the mortgage to others with capital to lend and passes it into the hands of a mortgage service company who processes payments and maintains records of the mortgage.
Related Fool Articles
Recent Mentions on Fool.com
- Western Sky Loans Are No More, but We Can All Learn a Valuable Lesson
- Where HOA Fees Make Renting Cheaper Than Buying a Home
- Is Your Home Equity Line of Credit (HELOC) a Trap?
- Using a Credit Card for Financial Emergencies: Rarely a Smart Move
- 4 Legitimate Ways House Hunters Can Quickly Boost Their Credit Scores
- Bank Stocks: Where to Invest Your Money Now