Question:

How to pay no loan origination fee?

Answer:

A borrower will pay no loan origination fee:

  1. with a no-cost loan, the fee being covered by the lender for a higher rate; or
  2. with a no-cash loan where the lender rolls closing costs into the loan.

The loan origination fee sometimes is greatly reduced, but the lender will charge additional junk fees to compensate for it. Borrowers are often led to believe that they should compare lenders' loan settlement charges when comparison shopping. However, asking for the rate, APR and bottom line closing costs may produce much better results. Even if negotiating with lender can lead to waiving certain fees, you can never be sure how the loan origination fee is spread over junk fees.

If you don't want to pay loan origination fee and junk fees, look for a no-cost loan.

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