Earnest offers an optional origination fee¹ on Personal Loans that allows applicants to lower their interest rate by paying a small percentage of the loan amount upfront. This option can help reduce monthly payments and may lead to savings over the life of the loan. If selected, the origination fee is deducted from the total loan amount before the funds are sent. The exact fee amount varies by application and is only available in states where origination fees are permitted. Because the fee is applied upfront, applicants receive a slightly lower disbursement amount in exchange for the reduced interest rate.
Some applicants choose an origination fee because it can lower their overall borrowing costs over time, even though it increases the upfront cost of the loan. Others may prefer not to pay a fee and instead accept a higher interest rate. The origination fee is completely optional, allowing applicants to compare both options and choose the one that best fits their financial goals.
1 You may qualify for a lower interest rate by electing to pay an optional origination fee that is equal to 1-8% of your total loan amount. The fee is deducted from your loan proceeds at disbursement. This fee is not required, and it will not impact your loan approval.