How much can a loan agent make when refinancing a loan?
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I live in California, and I just refinance my mortgage. I found out that the mortgage processing company made about 1.2% commission of the loan amount. How much can a loan agent make? If the loan is $1 million, the agent could make $10k for just one loan. Is it the case?
How much can a loan agent make when refinancing a loan?The limit varies from state to state. In California, it's 6% of the loan amount. I know of places that make 3 to 5 percent on every loan from people who don't think they have a choice. Some states do not have limits. 1.2 percent is not bad. I average a little less than 1 percent total compensation, and I'm way below most of the market.
Of course, judging the loan by how much the loan company makes (or has to disclose - direct lenders don't have to disclose what they make while brokers do) is a good way to end up with a bad loan. Judge the loan by the loan the competition could have delivered to you. If one loan is a thirty year fixed at 6.5% with no points, that's a better loan than 6.75% with one point. Doesn't matter what the loan company made - you get a better deal with the first loan.
How much can a loan agent make when refinancing a loan?yes and sometimes they make more then that
How much can a loan agent make when refinancing a loan?It really depends. Some states limit the amounts a mortgage company can charge on your loan, say 2% of the amount financed. On a 1st mortgage in standar 3rd party fees, you are looking to pay approx $4000-5000 in fees for everything from pre-paid interest, title, escrow, reserves, underwriting, processing, etc. You would have to look at the Good Faith Estimate or have a lawyer look at it to really tell if you were over charged. Please feel free to contact me with any questions or concerns, or if I can be of further help: JessicaStephens@banncor.com. Best of luck.
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