6 Best Mortgage Lenders with Low Origination Fees of 2026
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Last updated November 3, 2026
A mortgage origination fee is what lenders charge to set up your loan, so it pays to compare. That's why we’ve gathered our top-rated picks with lower-than-average fees.
This service is free and will not affect your credit score.
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 $400,000, your origination fee might be $2,000 to $4,000.
Among lenders in this roundup, the average origination fee percentage ranged from 0.2807% to 0.8225%, which translates to $1,123 to $3,290 on a $400,000 loan, 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.
Navy 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.
What we like
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.
What we don't like
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.
First Federal Bank stands out for its competitive APRs and its emphasis on government loans. Most likely to appeal to borrowers shopping for low rates and fees.
What we like
Strong experience in FHA and VA lending.
APRs tend to be competitive, according to the latest federal data.
Minimum credit score requirement of 580 for some loans, which is lower than some competitors.
What we don't like
Home equity lending is not a priority.
Customizable rates are not available online without providing contact information.
Alliant Credit Union allows you to see a wide range of customized mortgage rates without sharing your contact information, and offers competitive loan products for first-time home buyers.
What we like
Offers a competitive combination of low rates and fees.
Mortgage borrowers do not need to become members of the credit union until reaching the closing process.
Sample rates are displayed upfront, and it's easy to get detailed, personalized rates without providing any personally identifying information.
Real Genius, A Division of Luminate Bank is a smart pick for a do-it-yourself online quote. We’re impressed with its "no fine print” approach and options to sort and customize APR and fees. However, Real Genius, A Division of Luminate Bank does not have a mobile app and doesn’t currently prioritize home equity lending.
If you want a wide range of loan options from a traditional bank, Truist is worth a look. Its streamlined application process and access to human support can make borrowing easier.
What we like
Offers a wide range of mortgage options focused on affordability.
Low mortgage rates and fees, compared with competitors.
Offers a wide variety of alternative loan programs, including interest-only loans, co-op loans and options for self-employed borrowers.
What we don't like
Getting custom rates and applying for mortgage preapproval both require human contact.
Customer care leans heavily on phone and in-person service.
HELOCs are not available in most states, though home loans are available everywhere in the U.S. except Alaska, Arizona and Hawaii.
How we chose the best mortgage lenders with low origination fees
Our team of mortgage experts follows an objective, consumer-first methodology to assess home loan lenders with low origination fees and pick the best.
40+
Lenders reviewed
We review 40 lenders, including major banks, credit unions, and online lenders operating across multiple states.
4
Categories assessed
Each lender is evaluated across four weighted categories covering rates and fees, types of home loans offered, rate transparency and customer experience.
160+
Data points analyzed
Our team tracks and reassesses hundreds of data points annually for reviewed lenders, ensuring up-to-date, accurate comparisons.
The star ratings on this page reflect each lender's rating for purchase loans overall. We scored the category and chose lenders for this page using the following 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 4.5 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 the most recent available HMDA data for origination volume, origination fee, average interest rate and share-of-product data.
Estimates include principal and interest only and exclude property taxes, homeowners insurance and HOA fees.
A guide to the best mortgage lenders with low origination fees, from the Nerds who chose them
Here’s what makes the lenders on this month's list stand out.
Real Genius: “An impressive swath of specialized loans”
This lender’s “genius” move is offering an impressive swath of specialized loans, like self-employed, physician, non-QM, nonwarrantable condo and construction-to-permanent home loans. Plus, its 580 minimum credit score for conventional loans is lower than most lenders we review. The perks don’t stop there — you’ll find a customizable rate tool on their website that shows sample APRs and monthly payments, and the online application process is fully self-service. One not-so-genius move: There’s no mortgage mobile app.
Truist is our 2026 Best Mortgage Lender winner — and its competitive approach to costs is one of the reasons why. Its APRs are considerably lower than average, it offers loans to a wider-than-average range of financial profiles, and has detailed sample rates on its website. Don’t expect to find a mobile app, though. And closing is a little sluggish at 35 days.
Alliant: “Super competitive APRs and speedy closings”
Super competitive APRs and speedy closings are just two of the reasons why Alliant made this list. I was impressed by the Alliant Advantage Mortgage (AAM) program, which lets eligible buyers put 0% down without paying private mortgage insurance, and by the comprehensive rate tool that shows sample rates and payments based on your location and credit. However, it only shows sample rates for loans with at least 20% down, so you can’t test out scenarios with the AAM program.
NBKC: “Options for borrowers who don’t have an SSN”
We like to see lenders catering to all types of borrowers, which is why we were pleased to spot NBKC offering ITIN loans — an option for borrowers who don’t have a Social Security number. Oh, and the lower-than-average APRs and quick closing times don’t hurt. NBKC partners with the Missouri Housing Development Commission for home-buying assistance and offers down payment assistance to Kansas City locals. But, as you may have guessed, these programs are not available nationwide.
First Federal: “Competitive APRs and range of less common loan types”
First Federal caught our attention with its competitive APRs and less common loan types, like self-employed, physician, USDA and construction-to-permanent mortgages. It then continued to impress with its fully self-service application process (available online and via the mobile app) — a bonus for tech-savvy borrowers. You can’t see custom sample rates online, though, which makes it harder to comparison shop.
Navy Federal is our 2026 winner for Best VA loans, and it’s easy to see why. You’ll find low-down-payment options for first-time home buyers, lower-than-average APRs, a fully self-service online application process and a customizable rate tool that lets you compare costs before you apply. Active-duty military, veterans, their families and Department of Defense personnel are eligible to join Navy Federal. But if you’re looking for FHA loans, you’re out of luck — it doesn’t offer them.
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 the lender after you file a formal loan application. It's a standard form, which makes it easy to compare with other Loan Estimates. 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.
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.
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.
Is a lender fee the same as an origination fee?
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.
Are origination fees the same as points?
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.
