How much of a commission do mortgage brokers make (usually) and how can I become one?

Answer 1

Somewhere between 2-10% depending on your company. You need to have a college degree to become a mortgage broker.

Answer 2

The legal limit (nationally, unless you use banks such as deutsch bank which is an offshore bank) is 5.99%. This was implented 2 Feb 2006 I believe.

For instance, 100k loan amount max fees 5990.00. Minus Title/Escrow/processing/lender fee = about 4k give or take.

However, you'd be lucky to make 2k on an A-paper loan. Unless you sell an option arm or some other funky product.

You become a mortgage BROKER by being a loan officer long enough to get a really good handle on what you're doing. It is beneficial to have your brokers license early, but you can end up getting taken advantage of and lose your license because you don't know enough about what you're doing. Be a loan officer for no less than 3yrs and then explore becoming a broker. You don't need a college degree to be either one, the person above me is wrong.

Answer 3

A mortgage broker's income is dependent upon how hard he/she is willing to work and upon current market conditions. I have been a mortgage lender for mor than 20 years and my income has ranged from a $23,000 a year salary as a bank loan officer to $183,750 as a loan officer for a regional mortgage bank.

Some mortgage lenders now offer courses to become a loan officer. First Horizon Home Loans actually created an instruction course called First Horizon University where they train new loan officers.

This is a challenging industry. It is constantly changing, no two loans are the same, and, at least in the beginning, the hours are long and irregular if you want to grow your business. It requires a person with a lot of self discipline and a strong work ethic.

Which brings me to my final point. Ethics. The temptation to blur ethical lines for a hungry loan officer are very strong. Remember, there is not one Realtor/Referral source realtionship, no single commission, no pushy borrower on this earth worth losing your career and your self respect. If it feels wrong, DON'T DO IT.

This can be a rewarding career both financially and in the wonderful difference you can make in people's lives. It is hard work, it is challenging, it is endlessly interesting.

The best advice I can give you is to find a company that will give you good solid training so that you have a good foundation. Never sell rate, sell you and your willingness to be responsive, take responsibiiity, and provide excellent service. Develop, follow, and update a good business plan to ensure success.

Good luck!

Answer 4

6% or 3% if split between two. If the broker works for both the seller and the buyer it is usually a 6% commission. If two seperate brokers do the deal they split the commission, both getting 3%. It can differ a bit here and there but this is the general rule of thumb. 3% of 100,000 is $3,000, not a bad days work if you ask me. When the properties are worth more the more they make. 6% of 300,000 is $18,000, an even better days work. Well, it usaully takes more than a day, but broker are not just helping to sell one house at a time either. So, go to school and get out there and hussle. Good luck to you.

Answer 5

In Indiana it is a 5 Pecent of the total closing cost, minus the pre-paid's. I am a Broker in many other states, and I do not over charge my clients, why should I. I am doing them a service, and as a Professional, I pre-fer having a referal from them down the road. It is not easy money, I work on commission only, and process all my own deals. I like staying on top of all my deals. But do check your state, and see what the cap is. There are course you can take and a license - find a company that provides training for you - Where you can learn the business. Good luck.

Answer 6

Depends on the market and how knowledgable you are about the business. It's a great business to get in, but risky. Your income will also be directly affected by who you know in the business. Get involved with the real estate agents to nail down a purchase market for yourself. For refi's you can buy leads to generate refi business.
Not sure where you are, but you may need a license to become a broker. Most states require that. Good luck

Answer 7

1-6%. Search the web for your states banking division. I am in Texas and it used to be texas savings and loan. Ohio is the mortgage banking division, Tennessee is the DEPT of FInancial institutions. What state do you live in?

Answer 8

You also need a real estate license (at least you do in California, imagine that's true for most other states as well)