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.
Colin â I am doing a VA streamline and the origination fee for a $479,700, 3.375 % 30 yr fixed rate loan is $8,520.58 which is almost 2% of the loan. Additional settlement charges are $6,222.88 for a total of $14,743.46.Mortgage broker is telling me that to get that rate, the origination fee is higher.n the example above, the loan origination charge is $1,840 on a $348,000 loan amount, which makes the fee roughly half a percentage point (.50%). This particular broker charged a $250 origination charge, a $695 processing fee, and an $895 underwriting fee, which combined make up the $1,840 total.