Can mortgage brokers give lower interest rate by cutting down there commission ?
Can mortgage brokers give us a lower rate on 30 yr fixed(zero points) today at 4.87% by lowering there commission from the bank/lender where they are locking the rate ?
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thats a very low rate and chance are the broker is not making much.
However, if they are making something then they can most likely go lower.
If your broker is charging up front points – then they could theoretically use their commission to further buy down the rate. If they are making Yield Spread Premium, or back end points, then they can lower the rate and just make less.
If they have locked in your rate and rates have gone up- then there is not much you can do. Given the bond market and the recent uptick in rates you may just want to let sleeping dogs lie and enjoy the good fortune of your current rate.
To get a handle on how brokers and loan agents make money- so you can leverage your knowledge into a lower rate – here is an article on just the subject:
http://www.bankapedia.com/mortgage-encyclopedia/faqs/383-how-much-in-fees-should-i-expect-to-pay-for-a-mortgage
Not usually – in most cases the broker makes their commission in what is called the loan origination fee (usually around 1 point).
Are you talking 4.875% on a 30 year conventional loan? To give you that rate with no points, no origination, today would cost the broker a few points to do your loan. That’s not going to happen. Why is it everyone thinks professional should work for nothing? Do you work for nothing?
Do I ever give up .25% to make a deal work? If it is a high loan amount I will. But I don’t even have to do that often. Most people appreciate my professionalism & help & understand I do this for an income & want me to be paid. I am good at what I do & I expect to be paid for a job well done just like everyone else.