The average salary for a mortgage broker in the United States is $170,342, according to Indeed.com. This figure can vary depending on your level of experience and location.
Your employment type may also impact your overall pay. Some mortgage brokers work as independent contractors; others work for mortgage brokerage firms and banks. While independent contractors may have less consistent income, they benefit from setting their own work hours.
Mortgage brokers usually earn a base salary and a variable commission that depends on a few factors, including the following:
Loan terms
Mortgage brokers charge, on average, a commission of 2.25% for every loan. Terms vary, but federal regulations also prohibit brokers from charging above 3% of the total loan amount. If, for example, a mortgage broker charges 2.25% commission on a loan of $500,000, the commission would be $11,250.
Client agreement
Mortgage brokers can work on behalf of either lenders or borrowers. This means a broker’s fees depend on the agreement they have with their clients. Generally, mortgage lenders pay a higher commission than borrowers. Lenders typically compensate brokers between 0.5% and 2.75% of the loan amount. Brokers usually charge borrowers an origination fee under 3% of the loan amount.
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