Answers
How much does a mortgage broker make off a refinance loan? vs How much does a bank employee doing a refinance make off a refi loan? Besides ideal credit scores, what steps can be taken to ensure getting the best possible rate?
Ive been managers at a bank over loan officers. Ive been a loan officer at a bank. We paid our loan officers 50-75% of the Loan Origination Fee. Thats it. Its a high turn over job. The reason being is because they are only working for the bank for free training so they can become a broker or work for a broker.
The company I work for is 100%. I pay them a small fee 250-450 dollars per loan. I just use their name.
So to give you the bank example. The bank will price the loan for approx 1.5% YSP and charge a 1% origination fee. Ill pick on wells fargo. If you work at wells fargo as a loan officer and you are new on a 200,000 loan you will get 1/2 of the origination fee. So you made $1,000.
Where I work, Wells Fargo will pay me as a broker 2% YSP, and I take 1% origination. I would as a broker make $6,000 minus 350 bucks I pay the broker.
Brokers can get better deals then the retail side of the bank offers their own clients. The reason is simple. Banks normally will give better rates to the brokers then to their own loan officers. Ive worked on both sides. The reason is because brokers do 95% of their business.
I have a friend that works at say *Bank A* Large Bank. She is a loan officer at *bank A*. She hasnt trained enough to be on her own. She is working on it. She was doing her own loan and *bank A* was waiving the Origination fee because she worked there. She did it through me, and we took it back to wells fargo. Why? Because I still make 3,000 and she saved 1,000. Even though she worked there. She couldnt even come close with her rate sheet to what I was doing. Same bank.
There is alot you will learn over time.
Leaseoptionprogram.com helps homeowners in foreclosure who have equity and wish to keep their home. If you are unable to refinance the client and ...
Working with a mortgage company to refinace my home and the agent keeps telling me not to worry, we will close guarnateed. Now after a month and we still havent closed, we havent made a house payment in 2 months because he told us not to, and now the loan may not close because we are late with the mortgage payment. What do we do?
- Always, always, always, keep your existing loan payments current!
- Your missed payments have probably hurt your credit score too much for the loan he had in mind. Most home loans are bundled together by banks and sold as a block on the secondary market, so they must follow specific Fannie Mae-Freddie Mac guidelines in reqards to credit scores and other qualification issues. Find a local lender that does not package and sell their loans and so does not have to follow these guidelines. A small community bank, for example. Explain to them what happened and they may overlook any recent credit score problems resulting from this situation.
- Report the Mortgage broker to the Better Business Bureau, and the State Real Estate Licensing Board as Mortgage Lenders in most states have to have a Real Estate License.
Good luck!
I am taking 25k in equity my loan broker's fee is $6,600 my fica score 800 with one and 792 with the other.
A normal percentage does not apply here because the loan is not a normal loan amount. On average the loan officer will normally charge1-2 % of the loan amount for the broker fee. As you know in addition to the brokers fees there is title, escrow, lender fees, processing and other stuff that must be paid to 3rd parties that the broker contracts to complete the requirements by the lender. In your case the lender may require all the same things as if it was a normal size loan. The loan amount you are asking for can usually be obtained thru the mortgage company that is already holding your 1st and who will normally charge only min costs. If you can qualify for a loan with a mortgage broker you can most likely walk into any bank and get the loan you want with minimal costs. As a loan broker myself, I will not do a loan as small as yours because it is not profitable. Therefore my answer to you is, you do not need a loan broker for this type of loan. Go direct to the bank or the mortgage company that gave you your original loan.
I have lived in my house for two years and my Credit Rating is around 610?
Check several lending organizations.......not all are the same........
As the mortgage broker, shouldn't you know the answer to that?
Home Refinancing May Never Look So Good Again: John F. Wasik
Oct. 29 (Bloomberg) -- If you need to refinance your home mortgage, don’t wait.
It’s not time to play chicken. Lock in the best deal now. Mortgage rates have climbed over the last two weeks, according to mortgage buyer Freddie Mac of McLean, Virginia. At a 1960s- like national average of 5 percent, the 30-year rate isn’t far from its historic low of 4.78 percent, reached in April. As the economy heats up, it’s far more likely that rates will climb.
Not only can you save every month with refinancing, over the life of the loan your total interest payments drop substantially. Increased cash flow could be the single-best excuse to refinance if your total loan expenses are reasonable.
Let’s say you have a $300,000 mortgage and you are paying $1,847 a month on a 30-year, 6.25 percent loan.
You can obtain a 5.25 percent, 30-year loan and knock down your monthly payment to $1,656, according to the Bloomberg mortgage calculator. The $2,292 annual savings would do nicely in an emergency, college or retirement fund.
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News
Home Refinancing May Never Look So Good Again: John F. WasikBloomberg - Oct 29, 2009
One thing that my broker didn't pitch was a way to pay off the loan earlier without refinancing. That would save me thousands in interest costs -- without and more »Chicago Daily Herald - Nov 01, 2009
Lifestyle decisions include how much to spend on a house, whether or not to refinance, what type of mortgage to take, how large a down payment to make,North Country Gazette - Oct 29, 2009
with a local mortgage broker about refinancing their mortgages – which were, in fact, lists of individuals who had never expressed any such interest. and more »Wall Street Journal - Oct 28, 2009
MonitorBankRates.comBankers' Group BurnedThe MBA said Tuesday that it has retained commercial real-estate broker Holliday Fenoglio Fowler to sell the property. The trade group announced that it Mortgage bankers' HQ up for saleMortgage Bankers Association Selling Real Estateall 82 news articles »
PR Web (press release) - Oct 30, 2009
Question: Is Now A Good Time To Refinance? Answer: Yes. According to the National Mortgage Complaint Center, "because of mindless federal bailouts we could and more »