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How mortgage brokers are compensated
Short answer
Depending on the transaction and applicable requirements, mortgage-broker compensation may be paid by the lender or by the borrower and is disclosed on applicable loan documents.
Detailed explanation
Depending on the transaction and applicable requirements, mortgage-broker compensation may be paid by the lender or by the borrower. Required compensation and loan costs are disclosed on the applicable loan documents.
Your mortgage loan originator can explain where the charges appear and how the available pricing options differ.
What this means for you
Review the applicable disclosures and ask your mortgage loan originator to identify compensation and other loan costs before deciding how to proceed.
Important limitations and exceptions
- Availability, eligibility, pricing, documentation, and state coverage vary. This article is general education and is not an approval, rate quote, Loan Estimate, commitment to lend, or recommendation for a specific consumer.
Primary references
Educational-information disclaimer
This article provides general mortgage education. It is not legal, tax, investment, or financial-planning advice; an approval or credit decision; a commitment to lend; a rate lock; a Loan Estimate; or a recommendation for your specific circumstances. Consult the appropriate licensed or independent professional for transaction-specific guidance.