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.
Brokers and banks may not even charge a loan origination fee directly to the borrower, depending on the terms of the deal. A true no cost loan doesnât include a loan origination fee paid for by the borrower because itâs an out-of-pocket expense.