Cost To Make A Mortgage: $11,800 Per Loan

The average cost to produce a mortgage in the second quarter of 2025 was $11,800, according to a Freddie Mac analysis of retail lender expenses.

Of that, lenders are reporting their pre-tax net income per loan of $900. That dollar amount is the most since 2021, but at the same time, Freddie Mac warned, “production costs continue to trend upward.”

The second quarter production cost is an improvement over the first quarter of the year, when it cost $13,400 to make a mortgage. But it’s still roughly $200 more when compared to 2023's third quarter total of $11,600, the government-sponsored enterprise (GSE) reported.

The figures are part of Freddie’s Single-Family Team’s 2025 Updates to the Cost to Originate Study. The update touted the GSE’s “flagship” automated underwriting system, Loan Product Advisor (LPA), which the company said could deliver up to $1,700 in savings per loan.

“The cost to originate loans continues to rise,” the analysis reported, “but lenders using LPA digital capabilities save $1,700 per loan — about a 13% increase from 2024.”