What Are Mortgage Brokers? [mortgageinsuranceguide.blogspot.com]
Question by dwanzor: What would the mortgage broker fees be?? I have an option of getting a loan througn my bank with closing costs of 2300-2400 or maybe going to a mortgage broker in hopes of getting a better rate. How much does one usually have to pay the broker for his/her services....or how exactly DO mortgage brokers get paid???? Loan size will bearound 115,000 Best answer for What would the mortgage broker fees be??:
Answer by hunter2
The Lender pays the mortgage broker. But generally speaking the best fees are when you walk into the bank and get your loan over the counter. Since they often charge you a higher interest rate they can afford to have low fees. So it all balances out in the end.
Answer by smussehl
Closing costs can vary considerably as can the interest rates you will get. Call brokers in your area and ask them what loans they have available and what their closing costs will be. They will usually be upfront about it. Frequently brokers will charge 1/2 to 1%. Always consider that a broker and the bank have only thier interst in mind. They will give you the loan that makes them the most money. Take a look at www. bankrate.com , plug in your numbers and see how low a mortgage you can get. I have refinaced through lenders on this site twice and both times gotten a much better loan than what was available at the local market.
Answer by NF S2007
This is an excellent questions. I'm glad you acknowledge that Mortgage consultants do not work pro-bono. Well 2300 is not bad depending on how much your rate is . The way loan officers make money is that an honest loan officer will usually charge 1 point to the client and 1 point to the lender. So based on that your loan fee seems about right. I hope this helps , good luck. By the way make sure that they are not placing a prepayment penalty or that you interest is fixed for at least 4-5 yrs.
Answer by Mr. Knowitall
If you have excellent credit, a reasonable fee for that loan size is 1%. There are usually other fees involved that you may not see at the bank, however. For example, you may be charged processing fees, underwriting fees, etc. If you are quoted "no origination fee", the broker is making it in the rate (and is being paid by the lender). This just means that you're not getting the lowest rate possible - the broker will make money one way or another. One of the people who answered this question said to just go to the bank, because their fees are in the rate and "it all balances out in the end" - this is not necessarily the case. If the rate is lower with the broker and the closing costs are reasonable, it's usually better to pay the lower rate, because a higher interest rate over 15 or 30 years costs MUCH more than a 1% origination fee. If you are planning to keep the loan for several years, pay the origination fee and get the lower rate - it's worth it in the end.
Answer by mortgage help
You won't pay any more through the broker than you will through your bank. Comparing apples to apples, i'd bet the farm that the mortgage broker will find you a loan with lower rate and fees than the bank will.
Answer by djdraven99
your mortgage broker is going to charge you money. whehter it's an up-fonrt fee, or they take it onthe back-end. generally, 1-2 % of your loan amount...if they are taking anything more than that....they are screwing you
Canadian mortgage broker not charging any fees.
mortgageinsuranceguide.blogspot.com No Fees Mortgage Broker Canada
Mortgage brokers have had a rough few years. But Thursday had to be particularly painful. Wells Fargo ... It accounted for one in five purchases of loans from brokers during the first quarter, making it the largest such buyer, according to Inside ... What Wells Fargo's Broker Exit Means for Borrowers
Mortgage brokers carry out mediation between loaning companies who lend money for mortgages and those who borrow it. The money borrowers call out services from a mortgage broker for assistance in looking for the best mortgage deal possible. They are paid in a fee or commission basis for their services for the borrowers.
Mortgage brokers typically work at a brokerage or are self-employed. Brokers working for a brokerage firm work with different loaning institutions, so that the borrowers have a multitude of choices when pondering on mortgage. The aim of the mortgage broker is to aid the buyers find financing for their property. These brokers working for the mortgage company split their commission with the firm. Self-employed mortgage brokers do not have to split up their commission. But, they have to find their own clients and lenders.
Mostly, mortgage brokers are required to have license.
Large brokerage firms often hire only brokers with license for their profession so that there clients can have a wider base.
Licensing also ensures that the broker perfectly understands all the process regarding mortgage. It serves as a protection for borrowers, making sure that the broker is capable of handing such an important transaction efficiently.Even though most mortgage brokers have license, some of them do not take their clients interest by heart. These brokers typically miss out deadlines and recommend mortgages to their clients even if the deal is inappropriate for the capacity of the borrower. Edmonton Mortgage brokers abide strict ethical and professional principles that value the client’s interest.
While brokering mortgages does not need any specific degree in college, a background in financing and real estate is very helpful.Brokers work alongside with buyers and lenders, so they have to be comfortable with sales and dealing with different kinds of people. A typical Edmonton mortgage broker, for instance, regularly checks credit reports, interest rates and other financial information to ensure accurate deals.
People tend to confuse an Edmonton Mortgage Broker with an Edmonton mortgage banker. Mortgage bankers actually work with home buyers to borrow money from the institution they are working for. These bankers work directly for the banking institution rather than for a brokerage firm.
More What Are Mortgage Brokers? Issues
