Settlement Costs Booklet - HUD

Your Adjusted Origination Charges, Block A
Block 1, “Our origination charge” contains the lender’s and the mortgage
broker’s charges and point(s) for originating your loan.
Block 2, “Your credit or charge point(s) for the specific interest rate chosen.”
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If box 1 is checked, the credit or charge for the interest rate is part of the
origination charge shown in Block 1.
If box 2 is checked, you will pay a higher interest rate and receive a credit to
reduce your adjusted origination charge and other settlement charges.
If box 3 is checked, you will be paying point(s) to reduce your interest rate and,
therefore, will pay higher adjusted origination charges.
Note: A point is equal to one percent of your loan amount.
After adding or subtracting Block 2 from Block 1, “Your Adjusted Origination
Charge” is shown in Block A.
In the example shown, the origination charge is $6,750. No points were paid
to reduce the interest rate. Instead, because of the interest rate chosen, the offer
contains a $3,000 credit that reduces the adjusted origination charge to $3,750.
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