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 fee: Some lenders charge an origination fee for the services they provide, particularly if the loan is one that may require more work such as a subprime mortgage. You may be able to dodge this fee; however, watch out that you donât end up paying elsewhere, such as with a higher mortgage rate.