How does a mortgage consultant get paid?

Question

Zippia Team · Accepted Answer

A mortgage consultant gets paid by commissions or fees that the lender usually pays after the loan has closed. Mortgage consultants work as middlemen between borrowers and banks/lenders and, as such, can be paid by either party.

On average, mortgage consultants charge a commission of 2.25% for each loan, but they cannot charge more than 3% of the loan amount per federal regulations. In some cases, a mortgage consultant may charge an origination fee directly, which comes out of the borrower's pocket.

A mortgage consultant's total compensation can be paid through various means, including cash or an addition to the loan balance. For example, if a borrower pays the broker, they can do so at closing. However, if a lender pays, this fee is sometimes rolled into the loan cost - meaning the borrower would be required to pay it.

Different brokers have different fee structures. A mortgage consultant typically has access to various lenders, which may provide a bigger selection of products and commission terms.