These fees typically represent 1 percent of the loan amount. If you sign loan papers and are asked to pay a 1 percent origination fee, it’s really a commitment fee. That fee is nonrefundable. Some loan officers charge a 1 percent fee up front simply to keep you from shopping other lenders while your home is being built. Some loan officers will take 1 percent from you at your initial closing, then ‘‘refund’’ that 1 percent origination fee when you close on your permanent loan. This is usually nothing more than holding some of your money as an insurance policy should you decide to change lenders at the very end. If you paid a $3,000 commitment fee that is refundable, but you change lenders at the end of construction, then you’ve lost that $3,000 commit- ment fee. Your loan officer splits that money with his company.
