What is the term for the fee paid to a lender when a mortgage assumption takes place?

The term for the fee paid to a lender during a mortgage assumption is known as the Assumption Fee. This fee is charged for the lender's administrative costs associated with processing the assumption of the existing mortgage by a new borrower.

When a borrower assumes a mortgage, they take over the payments and the responsibility for the debt from the original borrower. The lender typically requires this fee to cover the review of the new borrower's creditworthiness, the documentation needed to officially transfer the loan, and any legal costs involved in modifying the loan agreement.

While other fees may be involved in the broader mortgage process, such as origination fees for creating new loans or transfer fees related to the property, they do not specifically refer to the costs associated directly with the assumption of an existing mortgage. Therefore, the Assumption Fee is the most appropriate term in this context.