What Is a Personal Loan Origination Fee?
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How much is a personal loan origination fee?
- Your credit score. You’re most likely to qualify with a lender that doesn’t charge origination fees if you have at least a good credit score (typically mid-600s or higher) and a low debt-to-income (DTI) ratio.
- Loan amount. Origination fees are usually assessed as a percentage of the loan amount, so you’ll pay more if you borrow a large amount.
- Repayment term. Some lenders may charge lower origination fees for loans with a long repayment term because you’ll pay more interest overall.
- Other information on your application. Other factors that can affect your origination fee amount include your income and whether you’ll have a loan co-signer.
Origination fees by lender
Lender | Origination fee |
---|---|
Best Egg | 0.99%-9.99% |
Happy Money | Up to 7%. |
Rocket Loans | Up to 9%. |
SoFi | None required. |
Upgrade | 1.85%-9.99%. |
Wells Fargo | None. |
Personal loan origination fee example
Is a personal loan origination fee worth it?
Other personal loan fees to consider
Can you negotiate a personal loan origination fee?
Most personal loan origination fees are non-negotiable, but it’s sometimes possible to negotiate origination fees for other types of loans, like mortgages.
Do you get an origination fee back?
Usually, you don’t get your origination fee back because it pays for the costs of processing your loan, however, some lenders may offer partial reimbursement if you pay off your loan early. Check with your lender about its policy.
Is a 10% origination fee high?
A 10% origination fee is on the high side for origination fees. A typical origination fee is 1% to 10% of the loan amount, though some lenders don’t assess this charge.
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