Origination fees are charges that lenders impose to process a loan application. These fees cover the costs of evaluating and approving the loan, including underwriting and administrative expenses. Typically expressed as a percentage of the total loan amount, origination fees can vary based on the lender and the type of loan, such as a mortgage or personal loan. Borrowers should be aware of origination fees when comparing loan offers, as they can significantly impact the overall cost of borrowing. It's essential to read the loan agreement carefully and ask the lender about any fees to ensure a clear understanding of the total expenses involved in obtaining the loan.