How are Mortgage Broker Fees?
We refinanced our mortgage thru an independent broker who we have used
before. This time around, there were no points, no origination fees, no
broker fees. There were standard closing fees, like appraisal, doc
prep, but they were all relatively standard rates. How are mortgage
brokers getting paid these days?
- They get a "kickback" commission from the bank.
Its equivalent to "negative points".
This sometimes shows up on the disclosure form brokens send you at the
end of the year.
The bank makes it up in the higher "no fee" interest rate.
Comm