How do lenders make money up front on your mortgage?
Key Takeaways Lenders make money on yourmortgageloan by charge you an institution fee , among other fee . An origination fee is a part of the entire loan ( usually half a percent to one percent ) that you pay off up front when get the loan [ source : Investopedia ] . Lenders do n’t do this just to ensure they ’re getting some money off your loanword up front , but because it quiet increases theinterest rateyou’re pay over the entire loanword ....