In commercial real estate finance, an origination fee is an amount of money charged by a lender for processing a loan. Loan origination fees can vary, and are often between 0.5% and 1%.
Do Commercial Loans Require Commercial Mortgage Insurance?
Most single-family home mortgages require the borrower to pay private mortgage insurance (PMI), or, for HUD and USDA loans, a mortgage insurance premium (MIP). This insurance protects the lender in case the borrower falls behind on their payments or defaults on their loan. However, the vast majority of multifamily and commercial real estate loans do not require mortgage insurance, with the exception of HUD multifamily loans.