Question:

How do mortgage brokers get paid?

Answer:

Well, mortgage brokers get paid out of borrowers' money and the commission from the wholesale lender. If the mortgage broker chose to disclose their fees and the wholesale rate, it is a good sign that the broker is following fair practices. If the broker refuses, the borrower should consider going to another mortgage broker.

Mortgage brokers get paid from the difference between the rate the client pays and the rate offered for the loan by the wholesale lender. They can go up or down with the broker fee (origination fee) as long as it is still above the wholesale lender rate. Commonly, mortgage brokers get paid 1 to 2%.

Origination fee is often open to negotiation and if the mortgage broker ask that borrowers sign an agreement to work with them only, borrowers could try negotiating the broker fee. Often it is in their best interest to work on exclusive terms with one mortgage broker only.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 3/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: