What is the term for the initial charge paid by the borrower to procure a mortgage?

The correct choice, which refers to the initial charge paid by the borrower to procure a mortgage, is the origination fee. This fee is typically assessed by the lender for processing the mortgage application and is a way for lenders to recoup some of their costs associated with underwriting the loan. It is based on a percentage of the loan amount and can vary depending on the lender and the specifics of the loan agreement.

Closing costs encompass a broader category of fees and expenses associated with finalizing a mortgage, which can include title insurance, appraisal fees, and various taxes, in addition to the origination fee itself. Discount points are a specific type of fee that the borrower can pay upfront to lower the interest rate over the life of the loan, while the application fee is a charge for processing the initial loan application, distinct from the origination fee which handles more comprehensive aspects of the loan service and approval.