Question:

How much mortgage broker usually gets from the deal?

No matter if he/she is paid by bank or directly by the buyer. How my do they make usually? I googled it and see people saying that 1% is fair? Is that true? Is there any averages or ranges available somewhere?

Answer:

“Wow, 1.5% ti8 2.5%, that’s crazy!” - I think Jack Winters that disclosed the 1.5% - 2.5% is probably the most honest answer you’ve received here.

Lenders and Brokers always make more than just what is charged on line 801 of the good faith estimate or HUD 1.  The only question is do they disclose it?

Most lenders will typically 1% as an origination or discount fee (which is not a true buydown) and they will get around 1% from the lender.  It’s not a “kick back” so much, especially if it’s a direct lender.

There is a lot of money earned by the servicer of the mortgage loan over a period of time, especially when the majority of your mortgage payment is interest for the first 10 to 15 years or so.

The bottom line is, Jack provided the most accurate answer if you really want the truth.  1% is a typical loan origination fee and lenders will explain to you how they make money and give you the opportunity to determine how to structure the loan and rate so that the buyer/owner gets the most benefit from their loan…ie…TRUE discount points.

Great question - Interesting response from Pros