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

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

Above Average

This fee is higher than typical for Utah.

Fee Comparison

Your FeeUtah AvgNational Avg
Origination Fee$1,500$1,450$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 Utah average is around $1,450. 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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