verb (used without object), prorated, prorating. 1. to make an arrangement on a basis of proportional distribution. verb (used with object), prorated, prorating. 2. to divide, distribute, or calculate proportionately. Origin of prorate.
Origination charge: The VA allows lenders to charge up to 1 percent of the loan amount to cover origination, processing and underwriting costs. They can choose to either charge you a flat 1 percent origination fee, or pick and choose among a host of fees, so long as they add up to no more than 1 percent.
Origination Charges are charges by the lender for the evaluation and closing of your mortgage loan application. These charges may be flat fees associated with the cost of processing your application or may be charges as mortgage âpointsâ. One point is an amount equal to one percent of the principal amount of a mortgage.