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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.
Origination Fees. The loan origination fee is the fee charged by the lender for processing a loan application. Origination fees, sometimes called origination points, are generally determined as a percentage of the total loan cost and usually range from .5 percent to 1 percent, or .5 to 1 point, of the loan.ppraisal Fee. The appraisal fee pays for a study of the property to document its value. Sometimes you pay the appraisal fee directly to the appraiser, and other times you pay them to the bank. If you are not paying the appraiser directly, the bank may be taking part of the fee.