Loan Origination Software Pricing: What Lenders Should Expect and Evaluate

Loan origination software pricing varies widely depending on the size of your operation, loan volume, feature requirements, and deployment model. Whether you're a small broker, a mid-sized credit union, or an enterprise lender, understanding how LOS platforms are priced—and what you’re actually paying for—is critical for choosing the right technology and budgeting appropriately.

From SaaS models to on-premise deployments, LOS pricing structures are evolving to reflect the growing demand for automation, compliance tools, and digital borrower experiences. Let’s break down the pricing models, key cost factors, and ROI considerations for loan origination software.

Common Pricing Models for Loan Origination Software

1. Subscription-Based (SaaS)

This is the most common model for modern LOS platforms. Lenders pay a monthly or annual fee based on the number of users, branches, or funded loans. SaaS pricing typically includes hosting, support, and ongoing updates.

2. Per-Loan Pricing

Some vendors charge per loan originated—ideal for brokers or lenders with variable monthly volume. This aligns cost directly with production but can be expensive at higher volumes.

3. Tiered or Usage-Based Plans

Vendors may offer pricing tiers based on loan types (e.g., mortgage, personal, commercial) or features (e.g., eSign, credit pulls, compliance modules). This allows for customization but adds complexity to budgeting.

4. One-Time License + Maintenance

Enterprise lenders may opt for a perpetual license model with upfront software costs and an annual maintenance fee. This offers more control but requires IT infrastructure and longer implementation timelines.

Key Factors That Influence LOS Pricing

User Count and Access Levels

Most platforms price based on how many users (loan officers, processors, admins) need access. Role-based pricing is also common—for example, charging less for read-only or support users.

Loan Volume

Some SaaS platforms adjust pricing tiers based on monthly funded volume or application intake, which scales with your production size.

Feature Modules

Add-ons like eSign, automated disclosures, credit integrations, pricing engines, or AI underwriting can significantly affect monthly costs.

Deployment and Support

White-glove onboarding, API access, custom development, and dedicated success managers may be included or priced separately based on vendor.

Compliance and Reporting Tools

Advanced compliance modules—HMDA, TRID tracking, audit trail reporting—may be bundled or billed separately depending on vendor structure.

Typical Price Ranges

Small Lenders & Brokers

- $150–$500/month for SaaS LOS with basic workflows - Or $50–$100 per closed loan on pay-per-loan platforms

Mid-Sized Credit Unions & Regional Banks

- $500–$2,000/month base - Additional costs for users, integrations, or volume tiers

Enterprise & High-Volume Institutions

- $5,000+/month SaaS plans or six-figure perpetual licenses - Includes custom modules, API access, and enterprise support

Evaluating the ROI of LOS Investments

Operational Efficiency

A modern LOS reduces manual data entry, minimizes loan defects, and shortens closing timelines—saving hours per file and reducing headcount needs.

Faster Time to Close

Automated workflows and digital borrower portals help close loans faster, improving cash flow and borrower satisfaction.

Compliance Risk Reduction

Built-in audit logs and disclosure tracking reduce the risk of costly regulatory fines or investor repurchase demands.

Higher Pull-Through Rates

Speed and digital UX mean more borrowers complete the process, improving conversion and increasing revenue per application.

Questions to Ask When Pricing LOS Options

Conclusion

Loan origination software pricing isn’t one-size-fits-all. It depends on your organization’s size, needs, and growth trajectory. By understanding the pricing models, key cost drivers, and how LOS platforms deliver ROI, lenders can choose a solution that fits their budget and supports long-term success. Investing in the right LOS means fewer bottlenecks, faster closings, and a more scalable lending operation.