So how do they get paid? Finder's fees account for the majority of your pay. Most mortgage brokers work on a commission basis and are paid by the originator of the loan. While this doesn't cost you anything up front, you should understand that this fee is in addition to the full cost of the loan. This fee can range from 0.0% to 0.7% of the loan amount.
Then there's the final commission that your broker may or may not receive from the lender. This is much smaller and is paid monthly to the broker, as long as you keep your loan in good standing. Then there are the other fees. If you cancel or refinance your loan within a certain period of time (usually around 18 months), you may be charged a commission; if you use multiple brokers, you may be charged a commission; if you sign the brokerage agreement and then decide to withdraw, a fee may be charged; if your loan is rejected and The brokerage agency You believe that you misrepresented your credit information, there could be a fee; if you're not going to succeed and your loan is below a certain dollar amount, you may be charged a fee.
The interesting thing is that, in reality, fees are rarely associated when dealing with a mortgage broker. On average, a mortgage broker will be paid between 1% and 2% of the total value of the loan, which can obviously be a substantial sum. If you have good credit and are a complex, busy person with no time or stomach for paperwork, a mortgage broker might be worth it.
