Is $1,500 a normal Origination Fee in Tennessee?

This fee is higher than typical for Tennessee. The state average Origination Fee in Tennessee is $1,400, compared to a national average of $1,750.

What is the average Origination Fee in Tennessee?

The average Origination Fee in Tennessee is $1,400. The national average is $1,750. Actual fees vary by lender and loan type.

Can I negotiate my Origination Fee?

Yes, the Origination Fee is negotiable in many cases. Lenders have discretion over this fee and may reduce or waive it when asked, especially if you have strong credit or are comparing offers. Getting quotes from multiple lenders gives you the most leverage.

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Is $1,500 for Origination Fee Normal in Tennessee? (2026 Guide)

Last Updated: April 2026 · Data: Optimal Blue OBMMI via Federal Reserve FRED API

Above Average

This fee is higher than typical for Tennessee.

Fee Comparison

	Your Fee	Tennessee Avg	National Avg
Origination Fee	$1,500	$1,400	$1,750

Typical range: $500–$3,000 nationally · Source: FairRate market data 2026

What Is the Origination Fee?

The origination fee is charged by the lender to cover the cost of processing your mortgage application. It typically ranges from 0.5% to 1% of the loan amount and is one of the most negotiable fees on a Loan Estimate. Lenders use it to generate revenue, and many will reduce or eliminate it in exchange for a slightly higher interest rate — or simply when asked directly.

Can You Negotiate This Fee?

Yes — the Origination Fee is one of the more negotiable charges on a Loan Estimate. Lenders have discretion here, and borrowers who ask directly often see reductions. Here is a word-for-word script you can use:

"Hi [lender name], I'm going through my Loan Estimate and want to talk through the origination fee — it's listed at $1,500. I understand origination is tied to the rate/points structure, so I want to be direct: I have a competing Loan Estimate from another lender showing a lower origination charge for the same rate. Nationally the range is $500–$3,000, and the Tennessee average is around $1,400. Can you reduce this fee outright, or restructure so I'm buying fewer points upfront? I'd prefer to close with you if we can align on the total cost."

Is Your Fee Normal?

Enter the Origination Fee amount from your Loan Estimate to find out — free.

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Average Loan Estimate Fees in Tennessee (2026)

Is $1,500 for Origination Fee Normal in Tennessee? (2026 Guide)

Fee Comparison

What Is the Origination Fee?

Can You Negotiate This Fee?

Is Your Fee Normal?

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