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If these fees are insignificant they can be expensed at the time incurred. On larger loans these fees can be materially significant. In these cases, the origination fees associated with the loan can be capitalized and amortized over the life of the loan.
I donât know the loan amount or the loan program, but Iâll assume a 30-year fixed and 10% down. Those lender fees, $4,090 divided by $157,500 amount to a total percentage of about 2.6%. The origination fee is nearly 1.6% of the hypothetical loan amount, coupled with a relatively high interest rate set at 5.25%.