Do Mortgage Brokers Charge a Fee
When you’re planning to buy a home or refinance your existing mortgage, a mortgage broker can help you find the best loan option. However, one of the most common questions people ask is — Do mortgage brokers charge a fee ? Understanding how mortgage brokers get paid can help you make an informed financial decision. Understanding Mortgage Broker Fees Mortgage brokers act as intermediaries between you and lenders. They compare various loan options, negotiate rates, and guide you through the entire process. For their services, brokers typically earn a fee — but how this fee is paid can vary. Types of Mortgage Broker Fees Borrower-Paid Fees: In some cases, you pay the broker directly for their services. This fee is usually a percentage of the loan amount, often ranging from 0.5% to 2.75%. For example, on a ₹50,00,000 loan, the broker’s fee could be between ₹25,000 and ₹1,37,500. Lender-Paid Fees: Many brokers are compensated by lenders instead of borrowers. In this case, the lender pa...