Question:

How big is the mortgage broker commission?

Answer:

Mortgage broker commission is a common way to pay brokers. Mortgage brokers usually have a broker's fee and receive their compensation partially from the lender and the borrower. While some brokers will pass the wholesale prices to the borrower, many are not going to disclose the markup they use.

A decent mortgage broker will tell about their commission if asked. Unlike loan officers who may be compensated $100 per loan, a mortgage broker will be expensive to use. Beside the commission, their processing fees are formed solely with the broker's discretion.

Some mortgage brokerage can charge you $500 more for the same service offered at another brokerage. In that sense, certain loan fees are more predictable when the loan is obtained through a bank. However, mortgage brokers are able to shop more lenders and ultimately find the most appropriate loan. Even if mortgage broker commission is expensive to pay, if you ask about it, you will find out whether it is worth paying it for the services provided by the broker.

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 2.9/5 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: