Is $1,500 for Origination Fee Normal in New York? (2026 Guide)
Last Updated: June 2026 · Data: Optimal Blue OBMMI via Federal Reserve FRED API
This fee is higher than typical for New York.
Fee Comparison
| Your Fee | New York Avg | National Avg | |
|---|---|---|---|
| Origination Fee | $1,500 | $1,800 | $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.
The Origination Fee in New York: What's Typical
New York's median home price is approximately $465,000. On a typical New York purchase loan of $372,000 (20% down), a $1,500 origination fee represents 0.40% of the loan amount — the New York average is $1,800, which is above the national average of $1,750.
New York has a highly competitive mortgage market, with dozens of national and regional lenders actively competing for borrowers. This gives you meaningful leverage to push back on lender fees.
New York is currently a seller-leaning market — lenders are still competing for loan originations, making fee negotiation worthwhile.
New York requires attorney involvement in real estate closings, which affects how settlement-related fees are structured — attorneys typically coordinate with the lender on fee itemization.
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. In New York, this fee tends to vary more across lenders than the national average, making it worth asking about directly.
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