Is the origination fee always negotiable, or is that fixed?

Can I negotiate the origination fee?

You want to know if lenders allow negotiation on origination fees or if they're set in stone. Origination fees can sometimes be negotiated, though this varies by lender and loan type. Some lenders have fixed fee structures, while others may adjust origination fees based on your credit profile, loan amount, or competitive offers from other lenders. Government-backed loans like FHA, VA, and USDA often have more standardized fee structures with less room for negotiation.

Your Loan Estimate shows the origination fee on page 1, Section A. Compare this fee across multiple lenders since some charge a flat fee while others use a percentage of your loan amount. If you receive competing quotes with lower fees, share these with your preferred lender to see if they'll match or reduce their fee.

Common approaches include asking your loan officer directly about fee flexibility, shopping with multiple lenders to compare total costs, or requesting lender credits that offset the origination fee in exchange for a slightly higher interest rate. Some lenders may also waive or reduce the fee for borrowers with strong credit scores or significant assets with their institution.