How do Mortgage loan officers make their money?
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I'm getting a mortgage loan through a mortgage company but the guy that is giving me the loan seems a little bit to excited. How much money is he making off of the loan of 170,000 and what should I look out for?
How do Mortgage loan officers make their money?Simply put the loan officer will get paid either three ways:
1. You pay him origination points
2. The lender will pay him
3. A combination of 1 and 2
For anyone to come here and tell you that only one or two ways is the right way or how much of % should be paid is completely wrong.
Each state is different on how much on an average a borrower will pay on origination points.
In order for you to find out how the loan officer is chargin your, look at the Good Faith Estimate.
If you are paying for origination points up front, you may be getting a better rate than having the lender pay the loan officer for his commission. Although you could be getting charge at both ends.
Look carefully at the Good Faith Estimate.
How do Mortgage loan officers make their money?be careful of brokers who not only charge the loan origination fees of 5,000 but are getting a 15,000 yield spread premium this almost happened to me by my fathers best friend Report It
How do Mortgage loan officers make their money?We are on commission only. He is making 1% on the front which is the origination which equals 1700, if he is not making any money in the rate (on the back) more than likely he will make more money on the front (in the origination fee)
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