DO MORTGAGE BROKERS RECEIVE A HIGHER COMMISSION FOR DELIVERING ADJUSTABLE RATE MORTGAGES TO THE BANKS?

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I’m a CPA though am not wholly certain how a debt brokering routine works. I’ve perceived a little rough report in a past indicating to me which a aloft a rate is, a some-more of a elect a bank pays to a attorney for bringing them a loan. we hold a expect conditions have been when a rate is on top of a bank “par rate”. Now I’ve listened which if a attorney brings a bank an tractable rate loan which a attorney receives as well as even aloft Commission. Is this true?
Thanks,
Craig R. Fechter, CPA

Posted on October 29, 2009 at 2:05 pm by admin · Permalink
In: Mortgage · Tagged with: , , , , , , , , ,

3 Responses

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  1. Written by Mortgage Expert
    on October 29, 2009 at 2:05 pm
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    It is true that the broker gets paid for an above par rate but not true that they are paid more for an adustable rate. The reason that some brokers and lenders for the matter push an adjustable rate is that it is lower than a fixed rate and “easier to sell”. It’s unfortunate but many loan officers are just sales people and will sell what they think is easiest instead of what is best for you.

  2. Written by George
    on October 29, 2009 at 2:05 pm
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    Unless you have a fixed-rate mortgage, the current mortgage interest rates are very important to deciding how much you should pay every month

    Written by AM-NM centaur
    on October 29, 2009 at 2:05 pm
    Permalink

    Yes. Their commission comes from the rate spread. Adjustable mortgages and all those fancy instruments have higher yield spread premiums.

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