How much does a mortgage consultant make per loan?

Question

Zippia Team · Accepted Answer

A mortgage consultant makes a 1% to 2% commission of the loan they find for clients. Overall, the mortgage consultant commission rate may vary slightly per loan, but it typically ranges from 0.50% to 2.75% of the loan principal. However, federal laws cap fees at 3% and require that broker fees not be linked to the interest rate.

Mortgage consultants can work independently or belong to a brokerage. Regardless of where you work, mortgage consultants, on average, charge a commission of 2.25% for each loan. So, for example, a mortgage consultant who charges a 2% rate to close a loan valued at $250,000 would earn $5,000.

How it works is that when the borrower pays the fees, it can then be rolled into the loan amount. So, when the lender pays, the broker's commissions are typically already built into the cost of the loan. Since mortgage consultants work essentially as middlemen between borrowers and banks/lenders, they can be paid by either party.