Based on info from http://peterdowns.com/posts/open-iterm-finder-service.html but with modified behavior and fixed to work with iTerm2 Version 3+. It will not work with older versions of iTerm. The modified behavior is to open a new terminal window for each invocation instead of reusing an already open window.

1. Run Automator, select a new Service
2. Select Utilities -> Run AppleScript
3. Service receives selected 'folders' in 'finder.app'
4. Paste script:

   on run {input, parameters}
       tell application "Finder" to set dir_path to quoted form of (POSIX path of (first item of (get selection as alias list) as alias))
       CD_to(dir_path)
   end run
   
   on CD_to(theDir)
       tell application "iTerm"
           activate
           set win to (create window with default profile)
           set sesh to (current session of win)
           tell sesh to write text "cd " & theDir & ";clear"
       end tell
   end CD_to
   

5. Save as 'Open iTerm at Folder'
6. Open Keyboard in System Preferences. Under Shortcuts -> Services -> Files and Folders check 'Open iTerm at Folder' (with desired keyboard shortcut - e.g. control-option-command-T)

1. Run Automator, select new Application
2. Select Utilities -> Run AppleScript
3. Paste script:

   on run {input, parameters}
       tell application "Finder"
           set dir_path to quoted form of (POSIX path of (folder of the front window as alias))
       end tell
       CD_to(dir_path)
   end run
   
   on CD_to(theDir)
       tell application "iTerm"
           activate
           set win to (create window with default profile)
           set sesh to (current session of win)
           tell sesh to write text "cd " & theDir & ";clear"
       end tell
   end CD_to
   

4. Save as 'iTermOpenScript.app' somewhere out of the way
5. Drag and drop the 'iTermOpenScript.app' onto the Finder toolbar while holding down the Option and Command keys

pdanford - Jul 2016