11 Best Mortgage Lenders with Low Origination Fees of 2025
Last updated on January 23, 2025
Written by
Lead Writer & Content StrategistEdited 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.
- 40+ years of combined experience covering mortgages and financial topics.
- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
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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 itThe relatively small Andrews Federal Credit Union offers some mighty advantages, like showing detailed, personalized interest rates without requiring contact info and making it easy to get out of paying an origination fee.Pros
- Has a robust and user-friendly tool for customized mortgage rates.
- Easy to qualify for credit union membership.
- Offers HELOCs and home equity loans.
ConsRead full review- Physical branches in the U.S. are limited to Maryland, New Jersey, Virginia and Washington, D.C.
- Does not offer less common mortgage types, like renovation or construction home loans.
State Employees' Credit Union: Best for North Carolina borrowers
Min. credit score
N/A
Min. down payment
0%
- Why we like itState Employee's Credit Union in North Carolina has some of the lowest average mortgage rates of lenders we review, as well as generous grants and specialty loans for first time home buyers who meet its membership criteria.Pros
- Offers a no-down-payment mortgage without private mortgage insurance.
- Participates in multiple first-time buyer assistance programs.
- Very 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 has a user-friendly website and low average rates, but the mobile app is not aimed at mortgage borrowers and browsing customized mortgage rates requires supplying your name and contact information.Pros
- Mortgage rates are on the low side compared to other lenders, according to the latest federal data.
- VA loans represent more than a quarter of purchase volume, a larger share than many lenders NerdWallet reviews.
- Offers a variety of loan types for purchase and refinance, including fixed- and adjustable-rate loans and government options
ConsRead full review- HELOCs and no-down-payment loans are available only in the Kansas City metro area.
- Mobile app focuses on online banking, not mortgages.
- You’ll need to share contact information to see customized mortgage rates.
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 offers solid customer support and a highly rated mobile app. Borrowers need to contact the lender for a customized rate quote or preapproval — but average mortgage rates are among the lowest of lenders we review.Pros
- Very low average interest rates compared to other lenders, according to the latest federal data.
- Closing cost credits and interest rate discounts available.
- Highly rated mobile app.
ConsRead full review- Preapproval and application require a phone call to complete.
- Must contact the lender for customized rate quote.
- Doesn’t offer renovation or construction-to-permanent loans.
SoFi: Best for low-credit borrowers
Min. credit score
620
Min. down payment
3%
- Why we like itSoFi offers standard purchase and refinance mortgage options, but not construction or renovation loans, and stands out for its convenient one-stop-shopping setup.Pros
- Offers a credit up to $10,000 if closing exceeds the contract date and the lender is at fault.
- Sample mortgage rates are highly customizable.
- HELOC borrowers may access up to 90% of their home equity.
ConsRead full review- Borrowers may experience difficulty with customer service.
First Federal Bank: Best for competitive interest rates
Min. credit score
620
Min. down payment
3%
- Why we like itFirst Federal Bank Mortgage Lenders stands out for its focus on government loan lending, and will likely appeal to FHA, VA and other niche loan borrowers.Pros
- Over 40% of all loans last year were FHA, VA or USDA loans.
- Average mortgage rates are on the lower side, according to the latest federal data.
- Offers 15-, 20-, 25-, and 30-year repayment terms, which is unusually flexible.
ConsRead full review- No dedicated mobile app for mortgage borrowers.
- Some loans (including home equity products) are geographically limited.
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, specializes in down payment and closing cost assistance in the Golden State, where its experience with jumbo loans will be a plus for buyers navigating the state’s high home prices.Pros
- Experienced with first-time home buyer assistance programs in California.
- Closing cost discount when you buy through a preferred real estate agent network.
- Interest rate discounts available to account holders.
ConsRead full review- Membership is mostly limited to California residents.
- Can’t customize rates online.
- No VA or USDA 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 significant upsides and shortcomings. Sample rates are easy to view, assistance programs may apply and the lender earns solid scores in our rankings, but its consumer trust track record is rough.Pros
- Sample rates are shown for various loan products, along with the type of borrower and loan that would get them.
- Offers generous down payment and closing cost assistance programs for qualified borrowers.
- Market leader in number of jumbo loans and refinances originated, according to the latest federal data.
- Rate-and-term refinance interest rates offered are lower than average, according to the latest federal data.
ConsRead full review- Home loans business is broadly focused on existing bank customers.
- Doesn’t offer specialty home loans or equity borrowing (home equity loans or HELOC).
- Scandals and government actions have damaged consumer trust in recent years.
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
