How much is the standard mortgage commissions?

Answer 1

There is no standard but an effective broker will usually get it done for 1 point from the borrower with an additional 1 point as a rebate from ther lender (not out of borrower funds).

I teach loan officers how to be effective and have fired at least 12 that overcharge just to make more money from those who are not aware what these costs should be.

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Answer 2

There is no "standard" mortgage commission. That said, loan officers at banks are typically compensated less than mortgage brokers for each deal.

I was a loan officer and can shed some light on an LO's compensation. Where I worked, you started at 50 basis points (0.50%) of the loan amount for each deal. Based on your production level, you could be paid up 75 bps. Also, we made extra money for cross selling our banking products (checking/savings accounts, personal loans, investment accounts, etc.). Each lender and mortgage brokerage is different.

Answer 3

I think the maximum a broker can charge is a total of 5 points. Although I am sure this varies from state to state.

Brokers are paid in two ways: 1) a percentage upfront which varies by firm, transaction type & size. You can negotiate this with your broker and get comparative quotes from different firms. and; 2) a cut from the lender " out the back" if they upsell the rate to the borrower. Also known as the "yield spread premium". It's a kind of incentive the lender gives to the broker for selling the highest rate possible to the borrower. For every fraction of a point upsold, they get a small fee.

Answer 4

There is no standard.