Many of mortgage lenders charge an origination fee that comprises of almost 1% of the total loan cost. Therefore, origination fees are of crucial importance while you research for the lender. The best mortgage lenders with no origination fee help home buyers avail the home loan with no additional cost. The major purpose of the origination fee is to cover the expenses that is related to application processing, underwriting, and all other administrative services offered by the lender.
Although there are few lenders only that don’t charge an origination fee and most of the top lenders do charge it. When you sign-up for the paperwork of loan, the mortgage origination fee can put a strain on the wallet. The mortgage origination fee can range usually between 0.5%-1% of the total loan amount. To save all your additional money, we have compiled a list of the best mortgage lenders with no origination fee.
Table of Contents
Best mortgage lenders with no origination fee – Quick Glance
- Better.com – No #1 among best mortgage lenders with no origination fee
- LowRates.com – Greater mortgage lender with no origination fee with 30-45 days of closing
- PenFed Credit Union –Â Greater mortgage lender with no origination fee with 30-45 days of closing
- Ally Bank – No origination fee mortgage lender with availability in all U.S states
-  PNC Bank – Good option no mortgage origination fee lender with preapproval time of 20-30 mins
- Reali Loans- Great mortgage lender with no origination fee with mortgage rate lower than the national average
Charting the Best mortgage lenders with no origination fee
| Lender | Minimum Credit Score | Mortgage Rates | Home Loans Offered |
| Better | 620 | As low as 3.25% for 30-year fixed loans | Purchase, refinance, FHA, VA, USDA |
| LowRates.com | 620 | As low as 3.75% for 30-year fixed loans | Purchase, refinance, FHA, VA, USDA |
| PenFed Credit Union | 680 | As low as 3.25% for 30-year fixed loans | Purchase, refinance, FHA, VA, USDA |
| Ally Bank | 620 | As low as 3.50% for 30-year fixed loans | Refinance only |
| PNC Bank | 620 | As low as 3.75% for 30-year fixed loans | Purchase, refinance, FHA, VA, USDA |
| Reali Loans | 600 | As low as 3.99% for 30-year fixed loans | Purchase, refinance, FHA, VA, USDA |
Better.com
| Mortgage Rates | 1 to 3 basic points above or below the national average |
| Preapproval time | 20 minutes or lesser |
| Days to Close | 30-45 days |
 Better provides easy to navigate application process that delivers convenience to the users in multiple ways. This mortgage lender offers lower mortgage rates than average to facilitate a large user base. Being the top pick among the best mortgage lenders with no origination fee , it provides a completely digital system of application to the users. The preapproval time is fast in comparison to the other lenders and it takes less than 20 minutes to get approved. Apart from the mortgage origination fee the lender automatically apply discounts for the customers who are eligible for.
 Better lets you see the personalized mortgage rates online and you can easily get assistance from a loan expert on the types of mortgage and their requirements. Although the mortgage offering are limited but it does not charge any sort of commission fee. Being one of the credible and best mortgage lenders with no origination fee it saves approximately 1% of the loan amount through this commission-free business model. This means that you can approximately save $19,000 over the life of loan .
Credit Requirements of No#1 among Best mortgage lenders with no origination fee
Better requires a minimum credit score of 620 for the credit application.
Better Mortgage: Pros and Cons
| Pros | Cons |
| Fast loan preapproval time that is only 20 minutes | Does not offer VA or USDA loans |
| Can see personalized rates online before you process the mortgage application | Offer no brick-to-mortar locations |
| Charges no commission or lender fees |
 Best mortgage lenders for first-time homebuyers in 2024
 Better is also regarded as the safe option for the first-time home buyers . Although there are other mortgage lenders on the list as well but this one is the top pick. The main reasons for its preference over the other mortgage lenders are competitive rates, easy application process, loaning option and great customer support for assistance.
LowRates.com
| Mortgage Rates | Lower than the national average |
| Preapproval time | 20 minutes or lesser |
| Days to Close | On average it takes 20 days |
 Like all the other top-tier mortgage lenders LowRates.com provides customized rates online to facilitate the users. The mortgage rates are competitive in comparison with the other best mortgage lenders with no origination fee. The conventional rates have the same APR that means they charge no hidden fees to the users. You can easily compare the LowRates.com offers on the lenders website as well as request a quote to have more clarity.
 Being an excellent option in the list of best mortgage lenders with no origination fee it offers rate and term , cash-out and other streamline refinancing options to the users. The rates are made available to the users several times a day. Therefore the higher credit score you posses the better you rate.
Credit Requirements of No#2 among Best mortgage lenders with no origination fee
 The minimum credit score requirement for conventional loans is 620 , 700 for jumbo loans whereas 500 for FHA and VA loans.
LowRates.com: Pros and Cons
| Pros | Cons |
| The down payment assistance available to all the eligible borrowers | Loans are not available in Georgia and Massachusetts |
| Fast closing time that only takes 20 days | |
| TRU Approval Program provides complete credit underwriting in just a day |
PenFed Credit Union
| Mortgage Rates | Â Lower than the national average |
| Preapproval time |  Less than 3 days |
| Days to Close | 30-40 days |
PenFed Credit Union offers numerous loaning options that include VA, conventional, jumbo, and all other refinancing options to facilitate a large number of users. The loaning schemes are firstly targeted toward the military and government workers but now the membership is available to anyone that owns a PenFed savings account. Being one of the best mortgage lenders with no origination fee, it is only regarded as the largest-owned credit union. To become eligible for the mortgage you must have shared savings account with at least $5. It is important to note that this is not the membership share only and this requirement is same for every member.
 With no mortgage origination fee PenFed is operational in all the 50 U.S States. The borrowers are solely responsible for the appraisal , title , credit report and other services required to process the mortgage. Although the closing time duration is 30-40 days the lenders tries its best to close it before that time period. Moreover, the Mortgage Benefits Program is simplistic and provides three-tier lender credit for up to $2500.
Credit Requirements of No#3 among Best mortgage lenders with no origination fee
For VA and conventional loans, the credit score requirement is 620 but whereas for jumbo loans the credit score requirement is 700.
PenFed Credit Union: Pros and Cons
| Pros | Cons |
| Receive the broker-paid closing credit that is up to $1500 | Offers limited mortgage products |
| No lender fee plus minimum credit score for the mortgages | Alternative data is not considered for mortgages |
| Â Membership discounts are also available to the loyal customers |
Ally Bank
| Mortgage Rates | Â Lower than the national average |
| Preapproval time | Â Takes less than 3 minutes |
| Days to Close | Â Average closing time duration is 25-45 days |
 All the home loan borrowers who are seeking for conventional mortgages on low-interest rates and down payments will regard Ally bank as the favorable choice. However, this ender does not offer plethora of mortgage options but it does offer low down payment option to the users on the available home loans. Being one of the best mortgage lenders with no origination fee, it allows you to complete the entire application process online.
 Ally Bank offers refinancing options to the users that includes the rate and term , cash out options for the users. Once your application gets approved you can submit your documents online and lock your rate. The preapproval time is less than 3 minutes and there are altogether no hidden charges on application processing .Â
Credit Requirements of No#4 among Best mortgage lenders with no origination fee
For conventional loans, the minimum credit score requirement is 620 whereas for jumbo loans it is 700.
Ally Bank: Pros and Cons
| Pros | Cons |
| Â Customized rate quotes are available to the home buyers after entering the relevant information | Unavailability of FHA , VA, and USDA loans |
| Offers Fannie Mae home lending loan with flexible requirements and down payment of 3% | Â No branch locations for assistance |
| The interest rates are on the lower side as compared to the competitors |
PNC Bank
| Mortgage Rates | Â Lower than the national average |
| Preapproval time |  Takes 20-30 minutes |
| Days to Close | Average closing time duration is 45 days |
PNC Bank offers competitive rates and pricing to a large user base. It is operational in all 50 U.S states that includes specialty loans for low- and moderate-income borrowers. It also offers an innovative online experience named Home Insight that enables customers to know which mortgage payment they can afford. Apart from that it provides real-time quotes so customers have ease in allocating a particular monthly budget to the mortgages. Customers can easily follow the approval process to gain access to the mortgages. Being one of the best mortgage lenders with no origination fee it also provides ease to customers so that they can invite real estate agents in the process to monitor the whole progress.
 If you want to explore more mortgage options than this lender is specifically for you. Also, the customized mortgage rates are available on the site when you enter the ZIP code and desired loan amount. The system is completely digital and you get approval in a matter of minutes.
Credit Requirements of No#5 among Best mortgage lenders with no origination fee
The minimum credit score for jumbo loans is 700 whereas for all the other loans the credit score requirement is just 620.
PNC Bank: Pros and Cons
| Pros | Cons |
|  Provides digital support to all the customers | Unavailability of USDA loans |
| Provides online and in-person services to all the users | |
| Â Several discount programs are available to loyal members | |
| Can easily apply for $1500 homeownership grant |
Reali Loans
| Mortgage Rates | Lower than the national average |
| Preapproval time | Â Takes 24 hours |
| Days to Close | Â Average closing time duration is 30 days |
Reali Loans relies heavily on technology to ease the mortgage lending process for the users. Being the viable option in the list of best mortgage lenders with no origination fee, the offerings are pretty standard for the users. It is distinct from various mortgage lenders as it is also regarded as a real estate brokerage. This way it provides some great home buying and selling services less stressful for the users. The brokerage services are not as common and are available to users in only limited areas.
 For borrowers who prefer to do business remotely, Reali Loans offers online rate quotes to a large user base. The instant rate locks, e-document process fee, and electronic closing make this lender appropriate for home buyers. In addition, it offers a low down payment option to the users to take advantage of.
Credit Requirements of No#6 among Best mortgage lenders with no origination fee
The least credit required to become eligible for the mortgage is 620.
Reali Loans: Pros and Cons
| Pros | Cons |
| From supporting doc to signing up for loan the process is completely digital | Â Only available to the residents of 15 states |
| Charges no lender or commission fees |  Most cash upfront is required for the appraisal deposit that is refundable |
| Get access to mortgage in just 21 days however the timeline is 45 days | |
| Â After submission of application the loan officer will contact you within a day |
What are the tips of comparing no origination fee mortgage lender?
 To have a clear picture in your head about the mortgage payment you have to consider the interest rates , loan cost , origination fee. Solely origination fee cannot lessen the strain on the wallet. Lenders may exclude the origination fees to borrowers and include additional APR that will further increase the burden on the borrower.
 The right approach to estimate the loan cost is to get the loan estimate on the application . As the interest rates are dependent on the credit score and debt to income ratio so you need to provide income and asset information to get the loan. It is always good to seek for the lenders that offer the best mortgage rate. If you get good mortgage rate along with best mortgage lenders with no origination fee than it is a cherry on the top . The best mortgage rate along wit the no origination fee can undercut the overall cost of your mortgage.
What are the pros and cons of getting no origination fee mortgage loan?
 The pros and cons of mortgage origination fee on the mortgage loan is listed in the form of a table
| Pros | Cons |
| You won’t have to pay an upfront fee to the lender, which can save you thousands of dollars. | Lenders typically charge higher interest rates on no-origination-fee mortgages to compensate for the upfront costs they are waiving. |
| You can put the money you would have used to pay the origination fee towards other upfront costs, such as your down payment or closing costs. | May not be available from all lenders: Not all lenders offer no-origination-fee mortgages. |
| If you have limited cash, a no-origination-fee mortgage can make it easier to afford to buy a home. | If you have good credit and can afford to pay the origination fee upfront, you may be able to get a lower interest rate with a traditional mortgage. |
When do you pay the origination fee?
 The origination fees is paid to the lender as a part of the closing cost once the loan is completely approved by the mortgage lender. You can pay the fees no later than the closing disclosure. Therefore, choose one of the best mortgage lenders with no origination fee to save additional Cost of origination fees.
Frequently Asked Questions
How can I avoid the mortgage origination fee?
 There are several ways to avoid the mortgage origination fee and these include the following options:
1. Ask the lender to waive the fee or either lower the amount of origination fee
2. Choose a mortgage lender who does not charge origination fee
3. Ask the lenders to cover the origination fee as apart of seller concessions
 Can I negotiate the mortgage origination fee with the lender?
 The origination fee is negotiable depending upon the mortgage lender you choose. If you get different mortgage deal from various lender depending upon your credit history and credit score you can easily negotiate a better deal with a different lender. It is better to ask the lender to waive your fees and reduce the overall fees upfront .The lender will most probably agree on it if you put a sound argument to reduce the overall charges.
 Is 2% a high origination fee ?
 Yes, 2% is a high mortgage origination fee and is generally in the bracket of 0.5%-1%. The origination fee covers the cost of processing and funding your home loan.
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