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.

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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.