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Why are you worried about what a mortgage salesperson makes when buying a home?
Not worried, just curious.
Most are paid a draw against commission. They'll usually make 1% of the loan amount
Sure. I guess I was surprised because at this rate, say you do 20-30x deals a year, you’re making way more than any other employee at the branch.
In general, mortgage lenders make money in two ways. 1) Margins - if they are retaining your loan, this is the difference between the rate they lend at or the cost to borrow. 2) Basis points - if your loan is sold it’s typically sold for a premium (especially new loans)c this premium is a one time payment for the ownership and or servicing rights for your loan. Narrow margins or a small premium may be made up with points and fees passed along to you instead of being absorbed in the transaction. But in the end, it all comes out in the wash. And a percentage of these earnings, be it through salary or bonus or a flat standard rate, is what pays your LO.
But if you are happy with the terms of your loan, that is the only thing that should matter. I doubt you’re asking every professional you do any sort of business with a breakdown on how they get paid and it shouldn’t matter with your your mortgage professional either.
The lender is essentially paid out of the profit of the loan. So you do not pay the lender.
Government loans tend to be a little more profitable than conventional loans. Bank loan officers tend to get a salary plus a small commission.
The rest of us tend to get somewhere between .75 percent and one and a half percent of loan amount on average.
But even 20-25 - $200-250k - is a very healthy salary? Is that a reasonable pace of business if you’re associated with a bank branch? Also, do you find a lot of walk-in/call-in business? If you’re a producer, why would you work for a small bank that you know is not competitive rate wise vs a larger bank that bends over backwards for their HNW clients? This is such a fascinating discussion; thanks all
Navy Federal great choice. They get paid at closing by the lender.
Not enough, whoever said 1% of loan size must be with a small creditor
Small creditor I work 20 years in the mortgage business Wells Fargo being one of them and they're still paying 100 basis points 
Most are paid a combination of salary (base) and commission. Usually the commission is based on a monthly or quarterly sales quota and is paid by the mortgage company - not paid by the customer.
Typically get paid via a flat amount shown in the HUD document during signing. You may also see this amount during the buying process under a document called Good Faith Estimate. Typically known as “origination fees.”
This has nothing to do with the compensation of an individual loan officer.
The loan officer era gets paid the least in your loan transaction. They make between 50-80bps on average(bps are a fraction of 1 percent). The people who make the real money are the buying and selling realtors. They split a 6% commission off of you that YOU pay since you’re buying the home. You should ask yourself “was my realtor pushing me to buy a more expensive home than I wanted” because the more expensive, the higher the commission check is. For a mil home, 6% is 60k. The loan officer at 80bps makes 8k so why are you questioning the person making the least?
And they should since the broker is all commission, no base
You could cut out the loan officer and lend the money to yourself and keep all the interest!
Your loan officer is probably making very little in such a low demand market. Once interest rates recover, they should see steady improvement in earning potential.
Wells Fargo does not use outside loan officers. You either work for the Bank or you don’t.
I was just coming here to say that. As someone who used to work there I know this to be true.
There is pay in 2 side the fee abs the ratediffrentail
Most mortgage lenders are paid full commission. Some get paid a small salary or stipend as well but it all depends on the company
Usually direct deposit.
You should not be worried completely.Mostly its 1%