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Junk fee — often removable

Processing Fee

A processing fee has no standard definition and usually duplicates work already covered by the origination fee. It is almost always negotiable or removable.

Typical range
$0 (should not be charged)
Category
Junk
Negotiable
Usually negotiable

Common problems with the Processing Fee

  • Duplicates the origination/underwriting fee
  • No itemized justification

How to check this fee on your Closing Disclosure

Find this line item on page 2 of your Closing Disclosure. Compare the amount to the typical range, and check whether it duplicates another fee. If it is above range or a junk fee, raise it with your lender before you close — you have a 3-business-day review window.

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Related fees

For informational purposes only. Not legal, tax, or medical advice.

Processing Fee: What It Is, Typical Cost & How to Negotiate