| Posted By |
Message |
jes81276
summer fun!
Member since 3/06 4962 total posts
Name:
Jaime
|
what is the average commission charged by a mortgage broker?
Does 1% of the purchase price of the house seem correct, or too high? TIA
|
Posted 7/25/07 3:10 PM  |
| |
|
Long Island Weddings
Long Island's Largest Bridal Resource | Prudential Douglas Elliman Real Estate |
VickiC
Rocking the party
Member since 5/05 4937 total posts
Name:
Vicki
|
Re: what is the average commission charged by a mortgage broker?
No, I think that is about right. I think it can vary anywhere from 1% - 2%.
|
| Posted 7/25/07 4:49 PM |
| |
|
itkocak
Member since 7/07 7639 total posts
Name:
|
Re: what is the average commission charged by a mortgage broker?
Message edited 11/10/2011 2:26:12 PM.
|
| Posted 7/25/07 4:57 PM |
| |
|
csorisi
My 2 LOVES
Member since 11/05 1984 total posts
Name:
Corinne
|
Re: what is the average commission charged by a mortgage broker?
The commission should be based on teh loan amount not the purchase price.
|
| Posted 7/25/07 5:34 PM |
| |
|
jes81276
summer fun!
Member since 3/06 4962 total posts
Name:
Jaime
|
Re: what is the average commission charged by a mortgage broker?
Posted by csorisi
The commission should be based on teh loan amount not the purchase price.
You're right - I'm sorry - I meant 1% of the loan amount. Oops!
|
| Posted 7/25/07 6:10 PM |
| |
|
csorisi
My 2 LOVES
Member since 11/05 1984 total posts
Name:
Corinne
|
Re: what is the average commission charged by a mortgage broker?
Posted by jes81276
Posted by csorisi
The commission should be based on teh loan amount not the purchase price.
You're right - I'm sorry - I meant 1% of the loan amount. Oops!
No biggie I just want to make sure the broker wasn't giving you the wrong info. 1% is about average I wouldn't let them charge you more because it is more money out of your pocket.
|
| Posted 7/25/07 8:21 PM |
| |
|
Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
|
Re: what is the average commission charged by a mortgage broker?
my DH says 3% is average- but you don't necessary see that b/c of the points on the back end
you can try to get it down to 1%- if you try (according to my DH- he said he would rather close the deal and make less then lose the deal totally)
|
| Posted 7/26/07 12:22 AM |
| |
|
Niha
LIF Zygote
Member since 6/06 45 total posts
Name:
|
Re: what is the average commission charged by a mortgage broker?
I thought brokers don't charge fees? I spoke to one that works with my RE. I asked him how he gets paid and he said his fee is through the bank/mortgage co. that we sign with. He said it was like when we purchased life insurance, we had a broker that we didn't pay a dime too, but he got paid from our life ins. co.
Maybe we did end up paying him and didn't realize it?
|
| Posted 7/26/07 9:08 AM |
| |
|
Pumpkin1
LIF Adult
Member since 12/05 3715 total posts
Name:
|
Re: what is the average commission charged by a mortgage broker?
Our mortgage broker got paid as follows:
Our application fee ($500)
Commission from bank (approx. $2500)
Other than the application fee, we did not pay her anything. I actually asked her upfront if we were required to pay anything and she said no that she received payment from the bank.
|
| Posted 7/26/07 10:49 AM |
| |
|
kdanik
LIF Infant
Member since 7/07 148 total posts
Name:
|
Re: what is the average commission charged by a mortgage broker?
There are other ways Mortgage Brokers get paid without them charging you points....and most of the times you arent aware of it....its called a yield spread....what usually happens is a mortgage broker searches for banks with the "best rate" they can offer you based on your financials/credit.....your broker then tells you....for example...the best citimortgage can do for you is 6.750 %, when in fact the going rate for CitiMortgage is 6.00%, so they make $$ off on the difference in the rates....I think the norm for the most part is 1-2 points....if you have really good credit i usually tell my clients to go through actual banks....or if you belong to a federal credit union....their fees tend to be lower and they usually go with the prevailing rate. FM me if you have any additiona questions....my boss is a real estate attny and this is allllll we do ALLL day long!!! Good luck!
|
| Posted 7/26/07 1:28 PM |
| |
|
Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
|
Re: what is the average commission charged by a mortgage broker?
Is this the "origination fee" on the GFE?
If so, ours is .75%.
|
| Posted 7/26/07 1:29 PM |
| |
|
bikramaddict
mommy-to-be
Member since 8/06 4376 total posts
Name:
|
Re: what is the average commission charged by a mortgage broker?
Posted by kdanik
There are other ways Mortgage Brokers get paid without them charging you points....and most of the times you arent aware of it....its called a yield spread....what usually happens is a mortgage broker searches for banks with the "best rate" they can offer you based on your financials/credit.....your broker then tells you....for example...the best citimortgage can do for you is 6.750 %, when in fact the going rate for CitiMortgage is 6.00%, so they make $$ off on the difference in the rates....I think the norm for the most part is 1-2 points....if you have really good credit i usually tell my clients to go through actual banks....or if you belong to a federal credit union....their fees tend to be lower and they usually go with the prevailing rate. FM me if you have any additiona questions....my boss is a real estate attny and this is allllll we do ALLL day long!!! Good luck!
yep - was going to say this. i think they can also up the closing costs to make some bucks, but i could be wrong.
|
| Posted 7/26/07 1:32 PM |
| |
|
Pumpkin1
LIF Adult
Member since 12/05 3715 total posts
Name:
|
Re: what is the average commission charged by a mortgage broker?
Do your research and negotiate. We had been working with the mortgage broker for a while, but had not committed to anything. My husband used to work for a bank and got a better rate than she was offering. So, in order to make some money, she actually took a hit on her commission (1/8 point) in order to land our deal. Thus, she really only got $500 out of us.
|
| Posted 7/26/07 1:33 PM |
| |
|
ali120206
2 Boys
Member since 7/06 17792 total posts
Name:
|
Re: what is the average commission charged by a mortgage broker?
On our good faith, it showed our broker would be receiving about 1% from the bank. We paid him a nominal fee out of pocket.
|
| Posted 7/26/07 3:11 PM |
| |
|
