11 Best Mortgage Lenders with Low Origination Fees of 2025
Last updated on January 23, 2025
Written by
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Written by
Lead Writer & Content StrategistEdited by
Head of Content, Home LoansFact Checked
Fact Checked
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Origination fees are among the many costs you should research when choosing a mortgage lender. When it comes to the closing costs you’ll face when signing the paperwork for your loan, the mortgage origination fee can be a significant number. It’s often 0.5% to 1% of your total loan amount.
NerdWallet analyzes data mortgage providers report about their origination fees for all types of home loans. Our analysis covers any other lender charges included in borrowers’ total closing costs.
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Nerdy Tip
Shop around for the best combination of mortgage interest rates and lender fees, and remember: origination charges are negotiable.
These lenders earn high ratings from NerdWallet for home loans overall and charge competitive average origination fees, as well as average-to-competitive interest rates.
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Why trust NerdWallet
- 50+ mortgage lenders reviewed and rated by our team of experts.
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Why trust NerdWallet
Why trust NerdWallet
- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
11 Best Mortgage Lenders with Low Origination Fees of 2025
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Lender | NerdWallet Rating | Min. credit score | Min. down payment | Learn more |
|---|---|---|---|---|
620 | 3% | |||
N/A | 0% | |||
620 | 3% | |||
N/A | 5% | |||
N/A | N/A | |||
N/A | 3% | |||
620 | 3% | |||
620 | 3% | |||
N/A | 3% |
Andrews Federal Credit Union: Best for variety of loan types
Min. credit score
620
Min. down payment
3%
- Why we like itAndrews Federal Credit Union is on the smaller side, but offers big value through low rates and fast closings. Its online rate quote tool is exceptionally informative. Renovation loans aren’t available, and the lender tells us VA and FHA loans aren’t a priority.Pros
- Offers free, one-time “float down” if mortgage rates drop while your loan is in progress.
- Average time to close is 28 days, faster than the national average.
- Online rate tool is exceptionally user-friendly and detailed.
ConsRead full review- No renovation loans.
- VA and FHA loans aren’t a priority.
- U.S. branches limited to Maryland, Virginia, Washington, D.C. and New Jersey.
State Employees' Credit Union: Best for North Carolina borrowers
Min. credit score
N/A
Min. down payment
0%
- Why we like itState Employees’ Credit Union in North Carolina is worth checking out for those in the Southeast who meet its narrow membership criteria — especially first-time home buyers eligible for generous grants and specialty loans. But it doesn’t offer government-backed mortgages.Pros
- Offers a zero-down mortgage without private mortgage insurance.
- Participates in multiple first-time buyer assistance programs.
- Low average mortgage rates, according to the latest federal data.
ConsRead full review- Credit union membership eligibility is limited.
- Loans only available in five states.
- Doesn’t offer government-backed mortgages.
NBKC: Best for first-time homebuyers
Min. credit score
620
Min. down payment
3%
- Why we like itNBKC stands out for its attractive interest rates and fees, and is primarily an online lender — though its app does not have mortgage features and chat support is not geared toward mortgage borrowers.Pros
- Competitive interest rates and fees.
- Offers most common loan types, as well as a handful of specialty loans.
- Payouts are available to borrowers whose loans don’t close on time.
ConsRead full review- Customer service is only accessible over the phone for many mortgage customers.
- Does not offer renovation loans.
- Home equity products are not currently a lending priority.
Navy Federal: Best for military borrowers
Min. down payment
5%
National / regional
National
- Why we like itNavy Federal is known for VA lending, but its flexible VA-like loan options truly stand out. You'll need a military connection to join the credit union.Pros
- Offers unique no-down-payment and no-mortgage-insurance loan options for military and civilian members.
- 24/7 customer service supports borrowers stationed overseas.
- Has both home equity loans and lines of credit.
ConsRead full review- Borrowers must join the credit union before applying for a mortgage, and all borrowers on the loan must be members for the loan to close.
- Does not offer FHA, renovation or construction loans.
U.S. Bank: Best for customer experience
Min. credit score
N/A
Min. down payment
N/A
- Why we like itU.S. Bank stands out for online convenience and impressive mortgage options, from government-backed loans to boutique mortgages. Home improvement loans and borrower assistance are available.Pros
- Offers up to $17,500 in down payment and closing cost assistance.
- Wide variety of mortgage types.
- Experienced with construction-to-permanent and renovation loans.
ConsRead full review- Assistance programs limited to select cities and states.
- Online rate tool doesn’t customize by credit score.
Citibank: Best for competitive interest rates
Min. down payment
3%
National / regional
National
- Why we like itCiti stands out for offering low mortgage rates compared to other lenders reviewed by NerdWallet, though fees are similar to competitors. Qualified borrowers can get a mortgage with 3% down and no private mortgage insurance, and Citi customers can get a discount on rates or closing costs.Pros
- Offers relatively low mortgage rates, according to the latest federal data.
- Rate discounts are available for existing customers.
- Ranks highly for customer satisfaction as a mortgage originator.
ConsRead full review- Must create an account to apply.
- Borrowers may have to go to a separate website (Mortgage.com) for some information.
- Does not offer renovation mortgages.
SoFi: Best for low-credit borrowers
Min. credit score
620
Min. down payment
3%
- Why we like itSoFi offers perks for existing customers, including a discount on closing costs and accessible customer support. The site primarily highlights conventional home loan offerings, so borrowers looking for other loan types may need to reach out directly for more details.Pros
- Interest rates are on the lower side, according to the latest federal data.
- Conventional loan borrowers can choose between a 10-, 15-, 20- or 30-year term.
- HELOC borrowers may access up to 90% of their home equity.
ConsRead full review- Sample mortgage interest rates are shown for conventional purchase and refinance loans, but not for other loan types.
- For customized mortgage rates, you have to provide your contact information.
- - Online details on some loan products are scant.
First Federal Bank: Best for competitive interest rates
Min. credit score
620
Min. down payment
3%
- Why we like itFirst Federal Bank stands out for its exceptionally low interest rates and its emphasis on government loans. Most likely to appeal to borrowers shopping for low rates and fees.Pros
- Strong experience in FHA and VA lending.
- Average mortgage rates are on the low side, according to the latest federal data.
- Minimum credit score requirement of 580 for some loans, which is lower than some competitors.
ConsRead full review- No mobile app.
- Home equity lending is not a priority.
- Does not offer renovation loans, but does offer construction loans.
Golden 1 Credit Union: Best for California borrowers
Min. credit score
N/A
Min. down payment
3%
- Why we like itGolden 1, a California-based credit union, dedicates a significant portion of its business to jumbo loans — useful for those navigating the state’s high home prices. However, VA and USDA loans aren’t available.Pros
- Maximizes first-time buyer assistance with in-house and statewide funds.
- Offers a closing cost discount when using their real estate agent network.
- Interest rate discounts available to some account holders.
ConsRead full review- Membership is mostly limited to California residents.
- No VA or USDA loans.
- HELOCs, but no home equity loans.
USAA: Best for military borrowers
Min. credit score
620
Min. down payment
3%
- Why we like itUSAA is among the top five VA loan lenders by volume, though conventional loans are available, too. USAA membership is open only to current and former military and eligible family members.Pros
- Wide range of VA options, including jumbo loans and refinancing.
- Offers a low-down payment loan for first-time home buyers.
- Offers 10-, 15-, 20- and 30-year repayment terms, which is unusually flexible.
ConsRead full review- Average VA loan interest rates are less competitive than some other top VA lenders, according to the latest data.
- Does not offer home equity loans or HELOCs.
Wells Fargo: Best for first-time homebuyers
Min. credit score
620
Min. down payment
3%
- Why we like itWells Fargo has significantly shrunk its mortgage business in the past two years, dropping from the third largest mortgage originator in 2023 to the twelfth largest in 2024. It was still the fourth largest jumbo loan originator in the country last year.Pros
- Borrowers can see customized mortgage rate estimates for conventional and VA loans.
- Offers relatively low interest rates, according to the latest federal data.
- Discounts may be available for existing Wells Fargo customers.
- Rate-and-term refinance interest rates offered are lower than average, according to the latest federal data.
ConsRead full review- Does not offer home equity loans or HELOCs.
- Borrowers need at least $250,000 in assets with the bank to qualify for a rate discount.
- Prospective borrowers may be put off by the lender’s past legal issues.
What is an origination fee on a mortgage?
The origination fee is what a lender charges you for giving you a mortgage. It's essentially a service fee, and it's one way lenders make money. Another big source of income is profit that's built into the mortgage interest rate the lender offers you.
If a lender claims to offer no origination fee, proceed with caution. The fee may be baked into the interest rate, or it could show up under a different name, like an underwriting fee or an administrative fee.
You can find the origination fee and associated costs on the second page of your Loan Estimate. You'll get this document from any lender that has offered you mortgage preapproval, and it's a standard form, which makes them easy to compare. At the top left of Page 2, you'll see a box labeled "A. Origination Charges." Under that heading, you'll find lender charges, including the origination fee and optional mortgage points.
How much do origination fees cost?
Origination fees are charged as a percentage of the loan amount, so they vary depending on the size of your mortgage and the percentage the lender charges you. Between 0.5% and 1% of the total loan amount is fairly standard. If you were taking out a loan for $250,000, your origination fee would probably be $1,250 to $2,500.
Among lenders in this roundup, the average origination fee ranged from $1,403 to $3,270 in 2023, according to the latest Home Mortgage Disclosure Act data.
You can negotiate these costs. This is yet another reason having mortgage preapprovals can help, as you could try to persuade one lender to lower its fees based on another lender's offer. In a buyer's market, you could potentially also negotiate to have a home seller chip in toward your closing costs.
When do you pay the origination fee?
You’ll pay the origination fee as part of your closing costs once your loan has been approved and money's ready to change hands. No later than three days before closing, you'll get a closing disclosure that you should go over to check on all costs, including the origination fee. This form looks more or less identical to the Loan Estimate, except that it has real numbers instead of estimates. Compare the two forms to see how the costs may have changed. Some are easy to understand. For example, property taxes are prorated based on the closing date, and when you got the loan estimate, no one knew what day of the month that would be. If anything looks off, contact your loan officer to ask about it. That's why the three-day window is required.
Since the considerable chunk of change paid on closing day also includes your down payment, it's usually paid with a wire transfer or cashier's check to a third party (this is one type of escrow in real estate) rather than directly to the seller. Make sure to leave enough time to move all the funds you're using for your down payment and closing costs to an easily accessible bank account to avoid any last-minute holdups.
More from NerdWallet
Last updated on January 23, 2025
Frequently asked questions
- The buyer pays the mortgage origination fee because they're the one getting the mortgage. The origination fee is levied by the lender as a charge for providing the loan.
- An origination fee is one type of lender fee. You'll find all fees charged by the lender on the top left of the second page of your Loan Estimate under "A. Origination Fees." Origination fees can go by many names, so you might be shopping for a "no origination fee" mortgage but find items like a processing fee, an underwriting fee and so on.
- Discount points are one type of origination fee, but they're different from the type of processing charge that most people mean by "origination fee." Points are optional prepaid interest that you can pay to bring down your interest rate. An origination fee, which a lender charges for giving you the loan, is not optional.
Methodology
The star ratings on this page reflect each lender's home loans overall star rating. Read more about how we determine those ratings.
The lenders on this page are chosen using this methodology:
NerdWallet reviewed more than 40 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (measured among lenders with at least a 1% market share), lenders with significant online search volume and those that specialize in serving various audiences across the country.
For inclusion in this roundup, lenders must achieve an overall rating of at least 4 stars from NerdWallet. Lenders must achieve at least 3 stars for origination fees, as well as 3 stars for interest rates.
NerdWallet solicits information from reviewed lenders on a recurring basis throughout the year. All lender-provided information is verified through lender websites and interviews. We also utilized 2023 HMDA data for origination volume, origination fee, average interest rate and share-of-product data.
NerdWallet's Best Mortgage Lenders with Low Origination Fees of 2025
- Andrews Federal Credit Union: Best for variety of loan types
- State Employees' Credit Union: Best for North Carolina borrowers
- NBKC: Best for first-time homebuyers
- Navy Federal: Best for military borrowers
- U.S. Bank: Best for customer experience
- Citibank: Best for competitive interest rates
- SoFi: Best for low-credit borrowers
- First Federal Bank: Best for competitive interest rates
- Golden 1 Credit Union: Best for California borrowers
- USAA: Best for military borrowers
- Wells Fargo: Best for first-time homebuyers
