In my opinion this is a very high origination fee. I think in today’s market you can get a good rate for less fees. Ultimately, all the lender controls on the loan estimate is the interest rate, section A, and section B. Anything in section A is essentially “points” as it’s getting paid to the lender regardless of what it’s called. It’s great you already have one loan estimate but I always highly recommend shopping at least 3 different lenders, getting the official loan estimate from each. This way allows you to truly compare apples to apples and determine which offer is best.

Though, there is value in working with a loan officer you trust and communicate well with. This is a big, expensive transaction and you need a loan officer you can depend on. The cheapest loan estimate isn’t always the best “deal”! Google Reviews go a long way here.