Mortgage brokers typically charge a commission for their services, which is a percentage of the loan amount. The exact commission rate can vary depending on the broker and the location, but it typically ranges from 0.5% to 2.75% of the loan amount.
For example, if you are borrowing $300,000 and the broker’s commission rate is 1.5%, the broker’s fee would be $4,500. This fee is usually paid by the lender, not by the borrower directly, but it is ultimately included in the cost of the loan.
In addition to the commission, some mortgage brokers may charge an application or origination fee, which can range from a few hundred to several thousand dollars. It’s important to understand all of the fees and costs associated with working with a mortgage broker and to compare these costs with those of other lenders to ensure you are getting the best deal.