Who Pays the Mortgage Broker?
Mortgage brokers are commonly paid by a lender and not the borrower. Mortgage broker fees are 1%–2% of the loan amount; however, these fees are typically not added to the loan.
A mortgage broker is not paid commission unless the loan closes. When considering your broker's advice, analyze the pros and cons of each loan and rate offered to you before closing on the mortgage.
Be sure to ask the mortgage broker beforehand what fees are charged and to whom. Be aware of any costs, fees, or other rate increases that are related to the mortgage broker.
- What Is a Mortgage Broker?
- Can a Mortgage Broker Offer FHA, VA, or USDA Loans?
- Are Mortgage Brokers Connected to the Financial Crisis?
- Can a Mortgage Broker Offer Jumbo Loans?
- What Are the Limitations of Using a Mortgage Broker?
- Will Using a Mortgage Broker Save Me Money?
- How Can I Find a Mortgage Broker?
- Do I Communicate with the Lender While Using a Mortgage Broker?
- What Will a Mortgage Broker Need from Me?
- How Do Mortgage Brokers Find and Select Mortgage Loans?
- How Should I Prepare Before Meeting with a Mortgage Broker?
- What Are Some Questions I Should Ask a Potential Mortgage Broker?
- What Happens If My Loan Is Declined When I Use a Mortgage Broker?