How Much Do Mortgage Brokers Make on Average

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How much do mortgage brokers make? Working as a mortgage broker in the financial business can be a rewarding experience. As a mortgage broker, depending on your region and degree of expertise, you might earn a gratifying commission-based compensation. Mortgage brokers help customers get mortgages or house loans and close them. They act as go-betweens for borrowers and lenders, collaborating with loan officers, underwriters, title companies, and real estate brokers.

How much do mortgage brokers make?

In the United States, mortgage brokers make an average of $92,262 per year, however, this amount varies depending on criteria such as expertise and geographic region.

Mortgage brokers generate money in a unique way compared to many other professions. Instead of receiving a regular salary, most mortgage brokers are paid a commission for each loan transaction they execute, which is determined by the following factors:


Mortgage brokers typically charge a 2.25% fee on each loan, although they are not allowed to charge more than 3% of the loan amount under federal rules.

how much do mortgage brokers make

Broker fees

Brokers can work for either borrowers or lenders, thus their fees are determined by the terms of their contracts. The commission paid by lenders is typically larger than that paid by borrowers. Lenders generally pay between 0.5% and 2.75% of the entire loan amount as compensation to mortgage brokers. Mortgage brokers often charge an origination fee of less than 3% of the loan amount when borrowers pay the commission.

Commission rates

Mortgage brokers frequently base their compensation rates on the housing market in their area.

In a more competitive housing market, for example, mortgage brokers can need to offer lower commission rates in order to represent themselves as a better and more economical option than other mortgage brokers.

Average mortgage broker salary

Nine states have an average mortgage broker income higher than the national average. Massachusetts is at the top of the list, followed by Hawaii and Connecticut in second and third place, respectively. Connecticut outperforms the national average by 4.7%, while Massachusetts continues the trend with a $5,278 (6.8%) increase above the national average of $77,202.

By state

  • New York: $84,680 per year.
  • Massachusetts: $83,879 per year.
  • Washington: $83,294 per year.
  • New Hampshire: $81,634 per year.
  • Hawaii: $80,560 per year.
  • Mississippi: $66,895 per year.
  • Missouri: $66,739 per year.
  • Florida: $65,221 per year.
  • North Carolina: $62,104 per year.

Years of experience and average salary

  • Less than one year experience: $42,000 per year.
  • 1-4 years experience: $50,000 per year.
  • 5-9 years experience: $51,000 per year.
  • 10-19 years experience: $75,000 per year.
  • 20+ years experience: $69,000 per year.

What do mortgage brokers do?

The job of a mortgage broker include assisting people in obtaining and closing mortgages or house loans, which includes the following duties:

Researching loan alternatives, keeping track of new mortgage offerings, and locating products and prices that fit their clients’ needs are all things they do. They frequently deal with lenders to negotiate rates and conditions, as well as confirm loan information with underwriters. Mortgage brokers also check their customers’ credit reports, verify their claimed income and spending, and interact with clients and real estate agents to arrange loan details and paperwork.

Although mortgage brokers can operate by themselves, the majority of them work for mortgage brokerage businesses. They build contacts with lenders and design mortgage packages to offer borrowers as they acquire expertise. The majority of seasoned mortgage brokers determine compensation rates for each lender.

Mortgage brokers must be licensed since they work in a highly regulated financial business. These professionals, whether self-employed or hired by a business, are responsible for maintaining their license current for the duration of their employment.

Mortgage brokers must also develop strong networks in order to continue receiving new business and clients. Most of them have connections with real estate brokers who can suggest them to prospective consumers looking for house loans.

How to become a mortgage broker

Here’s how to become a mortgage broker.

Complete a bachelor’s degree

First, obtain a bachelor’s degree from an authorized university. Consider taking a course in finance, economics, or accounting to learn the foundations you’ll need as a mortgage broker. A degree in business or real estate can also assist you to learn the fundamentals of the sector.

Complete a pre-licensure class (licensed mortgage broker)

Then, before seeking a job, participate in the pre-licensure training that all aspiring mortgage brokers must finish. This basic curriculum consists of 20 hours of classroom training on topics such as mortgage origination, mortgage broker ethics, and federal and state laws. Pre-licensure programs for mortgage brokers are regulated by the National Mortgage Licensure System.

Pass the licensing exam

Take the license exam given by the National Mortgage Licensure System after finishing the pre-licensure curriculum. The exam can be taken at any time during the year and includes questions for both national and state test takers. To obtain your Mortgage Loan Originator license, you must pass the test and pass background and credit checks. To work in your region, check with your state’s licensing agency to see whether you need to satisfy any extra criteria.

To work as a mortgage broker, you must have a current license, which you must renew on a regular basis. The majority of MLO licenses are only valid for a year.

Build a resume

A resume that shows your education, applicable experience, and MLO license is required to apply for mortgage broker positions. Include applicable courses and accolades on your resume/CV, as well as the date and location of your MLO license.

how much do mortgage brokers make

Complete on-the-job training

After obtaining an MLO license, you can begin working as an entry-level mortgage broker. You can be required to undergo a training program when you initially start. Most mortgage broker training programs are meant to teach new recruits about internal procedures and workflows and last a few weeks.

Cultivate important skills

Take advantage of every chance to develop the abilities you’ll need to thrive as a mortgage broker as you acquire experience. To work successfully with customers, you’ll need good interpersonal skills to develop connections with lenders and real estate agents, as well as strong decision-making abilities.

Continuing education programs can help you acquire technical skills and new mortgage laws during your career. Each year, you must complete a specific amount of course hours to renew your license as a mortgage broker.

Build a strong network

You should also take advantage of every chance to strengthen your ties with real estate agents so that you can continue to attract clients on a regular basis. Attending networking events in your region might help you meet real estate agents. For example, if you build a relationship or partnership with a lender or real estate agent, you could find yourself with a steady flow of clients.

Common questions

Questions regarding mortgage broker salaries.

What does a mortgage lender earn in comparison?

Even with multiple years of experience, the typical pay range for a mortgage lender is quite consistent (about $21,397), implying that there are little chances for improved income or promotion regardless of region.

Do mortgage brokers change commission?

Yes. Mortgage brokers charge a commission for the services they provide.

What is a loan officer?

A loan officer is a bank, credit union, or another financial institution official who assists borrowers with the loan application process.

how much do mortgage brokers make

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