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Trying to figure this out before i have to call a real one. do i pay the person preparing the loan for me, or is it the company that they are working for that i would be paying for? say for instance on a 100,000 home?is it negeociable?
I’m looking for a percentage or number range on a 100000 home.

2 Thoughts on What’s the going rate for a loan officer when refinancing your home?
  1. Reply
    November 24, 2012 at 5:53 pm

    Loan officers aren’t paid like real estate agemts; they are on commission from their banks (brokers are paid yield spread premiums from the lender they shop the mortgage to). Their commissions work like any other sales person. A car dealer may be able to reduce the price of the car, but you don’t really know if his boss is reducing his paycheck It is not negotiable because you don’t pay it, their company does.

    EDIT- there is no such percentage or number. A loan officer is employed by a bank so they usually won’t charge origination. A broker who shops a loan may charge an origination pt(s) so you can say 1% of the total loan which would be $ 1000 but that is not their total compensation because they will also get a YSP from the lender. They sometimes will lower to 0 their origination points but they may go with a bank that pays them a higher premium; sometimes for a loan with a higher interest rate (broker charges you $ 0 but gets you a loan with mortg A who gives you an interest rate of 5% and pays $ 1000 to the broker in YSP, they won’t tell you about lender B who charges 4% but is only willing to pay them $ 500 in YSP).

    Each point is 1% and, if they charge origination, this is how it is quoted as points-these points differ from interest rate points which you pay (& often have tax benefits) to get a lower rate from a bank.

    If you want to shop lender and broker compensation, you have to get Initial GFEs and TILAs, compensation, for BROKERS when yield spread, must be disclosed as such; however, no one discloses employee salary (loan officer with a bank) plus compensation is contained in many of the fees charged so no 2 will have the same charges or amount.

  2. Reply
    November 24, 2012 at 6:08 pm

    1 to 2 points. A point is a percentage points of the loan value; not the value of the home. You may find some ads for no points. Genereally what happens there is you get a slightly higher rate than you may have gotten otherwise and the lender pays the broker because of this. If you are being charged points, however, then your broker is most likely not getting paid by the lender.

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