A mortgage broker is a person who brokers mortgage loans for people or companies. This person keeps a list of lenders that offer mortgages and acts as the middleman between the borrowers and lenders. In this role, he receives a commission for every loan he brokows. A mortgage broker can either work directly with a lender or may have a number of lenders working on his behalf. Do you want to learn more? Visit Wealthy You.
The commissions that a mortgage broker receives depend upon the amount of work he does and the type of deal he breaks. The mortgage lender pays him an origination fee and a commission on the amount of money advanced. On the other hand, the title company pays him a commission on the full value of the property advanced. A mortgage broker makes money on all these deals, even though he has to pay the mortgage lender of a portion of the fees.
Usually, the mortgage broker’s commission is 15% of the total amount advanced, but this figure varies from company to company. Some companies also charge a fee for underwriting loans. The fees charged by lenders to brokers vary, as well. For example, a bank may not charge a commission, but a title company may charge a small fee to cover expenses such as processing the loan application.