Who Pays Mortgage Broker? Buyer or Lender?

**RE101** · 05-05-2010, 09:43 PM

Who does the mortgage broker get their commission from? Buyer or Lender?
How much do they usually charge? Average cost?
Can you negotiate the fee with them or is it set in stone?

**DCFawcett** · 05-06-2010, 01:04 PM

Originally Posted by RE101

Who does the mortgage broker get their commission from? Buyer or Lender?
How much do they usually charge? Average cost?
Can you negotiate the fee with them or is it set in stone?

Mortgage Broker gets their commission from Buyer, sometimes they get paid from the lender too but you won't see that.
2% (or points as they are known in the mortgage business) is about average...
They will try for 5% ... most states allow up to 5% so they will try for the max.

It is definately negotiable...
You should tell them there is no way your paying more than a half a point. They may go for it. Tell them you went directly to the bank and they offered you half a point and a 5.5 rate...

**Sabir** · 05-07-2010, 04:10 AM

Buyer pays commission to Mortgage Broke. but some times if both the buyers and lender are mutually agreed then they may pay both. But most of the time it is payed by the buyers end.

Their are many more things that needs to be include in any of property and real estate agreement.