7
Best Mortgage Lenders With No Origination Fee In 2026
Latest Mortgage Rates
Compare the Best Mortgage Lenders With No Origination Fee of 2026
Best Mortgage Lenders With No Origination Fee: A Closer Look
Navy Federal Credit Union
Best Mortgage Lender for Military Members and Veterans
Navy Federal Credit Union
Minimum credit score
Does not disclose publicly
Mortgage rates
Lower than the national average
Minimum down payment
0%
Does not disclose publicly
Lower than the national average
0%
Navy Federal Credit Union Mortgage gets our pick because it waives its typical 1% origination fee in exchange for adding 0.25% to your mortgage rate. While this increases long-term borrowing costs with a higher interest rate, you won’t need cash upfront for lender fees at closing.
- No-down-payment loans
- Many purchase, refinance and home equity options available
- $1,000 rate match guarantee
- Online and local branch access
- Strict membership guidelines
- No FHA or USDA home loans
How to apply
Borrowers can apply online, by phone, via mobile app or at a branch. Navy Federal home loans are available in all 50 states and Washington, D.C. Customer support by phone is available 24/7 in the U.S.
Speed
The average time it takes to close a purchase mortgage with Navy Federal Credit Union is 30 days.
Eligibility
- Does not publicly disclose minimum credit score requirements
- Minimum down payment of 0% for Choice loans and VA loans, 5% for conventional loans (including fixed-rate jumbo loans) and 10% for certain ARMs
- Adjustable-rate mortgages have no down payment requirement if the loan is used to purchase a primary residence
Loan types
In addition to VA and conventional loans, eligible borrowers can access the credit union’s proprietary Choice loan products—Homebuyers Choice and Military Choice—which provide up to 100% financing with no PMI.
| Loan Type | Yes | No |
|---|---|---|
|
Conventional
|
✓
| |
|
FHA
|
✓
| |
|
VA
|
✓
| |
|
USDA
|
✓
| |
|
Jumbo
|
✓
| |
|
ARM
|
✓
| |
|
Home equity loan
|
✓
| |
|
Specialty
|
✓ – Military Choice, Homebuyers Choice
|
Ally Bank
Best Mortgage Lender for Fast Preapproval
Ally Bank
Minimum credit score
620
Mortgage rates
Higher than the national average
Minimum down payment
3% to 10%
620
Higher than the national average
3% to 10%
Ally Bank Mortgage is an online lender that doesn’t charge origination fees and offers a fast preapproval time. The preapproval process can be completed online and only takes a few minutes. Once preapproved, you can access your preapproval letter, personalize it and begin sending it to sellers.
- 100% online application process
- Low-down-payment options
- Fast preapproval and underwriting times
- Phone support available Monday through Saturday
- No FHA, VA or USDA loans
- No home equity loans, HELOCs or specialty loan options
How To Apply
The application process is 100% online. Because Ally has no brick-and-mortar locations, customers will have to rely on phone correspondence for customer support. The only customer support option is by phone Monday through Friday, 9 a.m. to 9 p.m. ET and Saturday 10 a.m. to 6 p.m. ET. Preapproval takes as little as three minutes.
Speed
The lender’s average closing time is 36 days.
Eligibility
- Minimum credit score of 620
- Minimum down payment of 3% for some conventional programs and 10% for jumbo loans
- Alternative credit data, such as rent and utility payments, is accepted
Loan Types
Ally offers fixed- and adjustable-rate conventional and jumbo mortgages and HomeReady Loans. It doesn’t offer government-backed loans such as FHA, VA or USDA loans.
| Loan Type | Yes | No |
|---|---|---|
|
Conventional
|
✓
| |
|
FHA
|
✓
| |
|
VA
|
✓
| |
|
USDA
|
✓
| |
|
Jumbo
|
✓
| |
|
ARM
|
✓
| |
|
Home equity loan
|
✓
| |
|
Specialty
|
✓ – HomeReady Loans
|
Tips For Comparing No-Origination-Fee Mortgages
Although saving money on origination fees is a benefit for borrowers, make sure you look at other fees and the interest rate to get a full picture of your loan costs. Lenders may pass on the cost of the origination fee to borrowers in other ways, so it’s important to review your APR, which will show you the total cost of the loan.
The best way to get an accurate picture of your loan costs is to get a loan estimate upon application. Because your interest rate depends largely on your credit score and debt-to-income ratio, you would need to provide income and asset information in order to get a loan estimate.
You should shop around for a lender in order to get the best mortgage rate. You can take advantage of multiple loan estimates by negotiating with lenders to see if they will match or undercut the lowest estimate you get, either by lowering the interest rate or reducing certain fees, such as application fees.
What Is An Origination Fee?
Lenders charge an origination fee to facilitate the loan. This is a catch-all term that encompasses many administrative services that the lender provides, including preparing your documents, verifying income and other services required to process your loan application.
How Much Are Loan Origination Fees?
Origination fees are a percentage of the total loan amount. They’re usually between 0.5% to 1%.
When Do You Pay the Origination Fee?
You pay the mortgage origination fee when you close on your mortgage. Closing is the stage when you and your lender sign and finalize all the loan paperwork and money gets transferred. The origination fee can be paid from your loan proceeds, from the sale of your current home (if you’re moving and buying a new home) or from your savings account, typically via wire transfer.
Who Is Responsible for Paying the Origination Fee?
The borrower is usually responsible for paying the mortgage origination fee. It is included as part of the final costs due at closing, or it may be rolled into the cost of borrowing the loan in the form of a higher interest rate.
Are Origination Fees Negotiable?
Origination fees may be negotiable, depending on the lender. If you get competing offers for identical mortgages from multiple lenders, you may be able to use a loan estimate from a lender with lower origination fees to negotiate a better deal with a different lender.
Points—an optional fee you can pay to lower your interest rate—may also be negotiable. It depends on how badly the lender wants your business.
Certain third-party fees charged by companies other than your lender, such as title and escrow fees, may also be negotiable. At a minimum, shop around for these services to find the most competitive offer.
Appraisal fees and government recording and transfer tax fees aren’t negotiable.
Origination Fees vs. Points
| Origination Fees | Points |
|---|---|
|
Typically required
|
Optional
|
|
Covers the cost of processing your application, underwriting and closing your loan
|
Allow you to pay a lower interest rate each month in exchange for prepaying interest up front
|
|
Not tax deductible
|
May be tax deductible if you itemize your deductions
|
How Do Mortgages With No Origination Fee Work?
A mortgage with no origination fee has lower closing costs as only third-party fees and mortgage insurance or upfront funding fees apply. While your initial out-of-pocket costs are lower, lenders typically charge a higher interest rate instead to recoup processing fees.
Pros and Cons of Mortgages With No Origination Fee
| Pros | Cons |
|---|---|
|
Lower upfront expenses
|
Potentially higher interest rates
|
|
Purchase, refinance and home equity loans qualify
|
Not available for all loan programs or with all lenders
|
|
Can have low down payment requirements
|
Typically higher monthly payments
|
|
Several lenders waive origination fees
|
Third-party fees, mortgage insurance and discount point costs may still apply
|
Should You Get a Mortgage With No Origination Fee?
No origination fee mortgages can be an excellent option when you need more funds to afford a down payment. However, anticipate taking on a higher interest rate and monthly payment as the lender recoups the missing origination fee over the life of the loan.
In lieu of this type of mortgage, consider negotiating with the seller and asking them to cover all or some of the closing costs to avoid a higher rate and reduce your borrowing costs.
Methodology
We reviewed more than a dozen mortgage lenders that do business both online and in person throughout the United States. The lenders we reviewed represent some of the largest mortgage lenders by volume, which include banks, credit unions and online lenders. Of these lenders we chose the ones that did not charge origination fees, while also offering benefits in other areas.
Our scoring methodology included capturing 10 data points, which covered interest rates, lender fees, loan types, discounts, accessibility and borrower requirements. We compared each lender’s advertised mortgage rates to average mortgage interest rates as reported in Freddie Mac’s Primary Mortgage Market Survey. As of the reporting period, this data was accurate. However, be sure to check the latest mortgage rates to get the most accurate data.
The best lenders received a score of four stars or better and represented outstanding performance or services in one or more areas.
The following is the weighting assigned to each category:
- Loan costs: 30%
- Speed: 20%
- Credit requirements: 20%
- Loan types offered: 20%
- Access and availability: 10%
Specific characteristics taken into consideration within each category include average APR, average interest rate, origination fees, minimum credit score requirements, discounts and customer service availability.
We also offered bonus points up to 5% of the score when a lender considers alternative credit data.
To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Mortgage Lenders.
Mortgages expert Josh Patoka contributed to this article.
Frequently Asked Questions (FAQs)
Why do some lenders charge origination fees?
A loan origination fee is one way lenders make money in exchange for processing your loan. Even if a lender doesn’t charge an origination fee, they’re making money on your loan in some way so that charge might show up in other fees or in your interest rate.
What is a good loan origination fee?
Loan origination fees vary by lender, so it’s always important to compare multiple lenders to get the best rates and fees. Generally, origination fees are 0.5% to 1% of the total loan amount, though there are some lenders that offer mortgages with no origination fee.
Are closing costs included in the down payment?
Closing costs aren’t included in your down payment. You should expect to pay anywhere between 2% and 5% in closing costs, which include a wide range of fees such as title, inspection, escrow and commission.
What does it mean if a lender has zero lender fees?
If a lender says they have zero lender fees, typically called a no closing cost mortgage, this means that they won’t charge you for common fees associated with buying a home. These fees usually include appraisal, application, underwriting and some third-party closing costs. However, the lender will typically compensate for these costs in other ways, like by charging you a higher interest rate.
What is the average mortgage loan origination fee?
The exact amount will vary depending on the size of the loan, but the average mortgage loan origination fee is between 0.5% to 1%.
How do I calculate loan origination fee?
You can calculate the mortgage origination fee by applying the percentage charged to the loan amount. So, a $400,000 mortgage loan could have a fee ranging from $2,000 (0.5% of $400,000) to $4,000 (1% of $400,000).