How are loan officers paid?

Loan officers are paid in a variety of ways. However, their compensation is usually a mixture of base salary, commissions, and performance bonuses. It is important to note that the specifics of this answer will vary depending on each particular employer. Here is a closer look at the ways most loan officers are paid:

• Base salaries. Most loan officers get a base salary, which is a fixed amount of money per year that is received on a weekly, bi-weekly, or monthly basis. The specific amount will depend on several factors, including the experience level of the loan officer, the size of the lending company that they work for, and their geographic location.
• Commissions. In many cases, loan officers receive commissions in addition to their base salaries. These commissions are based on the loans that they close. The specific commission percentage varies, ranging from 0.5% to 2% and sometimes more, depending on the type of loan and the lending company they work for.
• Performance bonuses. Some employers of loan officers offer performance based bonuses, which may be a percentage of their salary, commission, or a fixed amount. Loan officers receive this when they meet specific performance targets. A popular example includes closing a particular number of loans in a given time period.