Average Mortgage Broker Salary in 2023
A mortgage broker helps customers find the best mortgage offers, prepare documentation and apply for loans to buy real estate. Using a mortgage broker is not essential, and some buyers prefer to deal directly with lenders.
If a customer takes out a mortgage through a broker, this will impact the mortgage broker’s salary as they will earn commission on the loan.
Most mortgage brokers earn commission on each mortgage they sell, which can boost their annual salary dramatically.
Mortgage broker salaries can vary hugely according to their level of experience, where they work, and how many transactions they oversee.
How Are Mortgage Brokers Paid?
Mortgage brokers earn a commission when a client takes out the mortgage. The broker connects the customer with the lender, helping simplify the process of applying for a mortgage.
A typical mortgage broker commission is set at around 1%-2% per transaction. In some cases, they will receive it from the lender, and in others, it will be a payment from the borrower.
It is illegal to accept payments from both the borrower and the lender.
In 2021, the average home loan value was $414,114. If a mortgage broker arranged a mortgage for this amount, they would expect to earn between $4,000 and $8,300 in commission fees.
Mortgage brokers can work independently or for firms that employ multiple brokers.
If a broker works for a company, they may earn a set salary and then split the commission with their colleagues, depending on the terms laid out by the employer.
What Is the Average Salary of a Mortgage Broker?
According to data found on Indeed.com at the time of writing this article, average earnings for salaried mortgage brokers in the US are approximately $68,500 per year.
Location impacts how much mortgage brokers can earn. The highest paying cities include:
- Los Angeles
- New York
How Much Do Mortgage Brokers Make?
Mortgage brokers don’t rely solely on their base salary, and most earn a significant amount in commission.
Indeed suggests that the median annual income increases by $55,000 per year once mortgage broker commission is added.
Mortgage brokers nationally earn approximately $100,000 - $130,000, but total incomes can vary hugely depending on the commission rates, the value of transactions, and how many transactions are processed.
Mortgage brokers who work in areas where property prices are high, for example, are likely to earn more than those working in cities or states where average property prices are lower.
Where Do Mortgage Brokers Earn the Most?
Property prices are higher in some cities and states than in others. The average price of properties impacts mortgage values, which affects the mortgage broker salaries.
The higher the loan value, the more commission a mortgage broker will earn. Statistics from Indeed.com suggest that salaries are highest in these locations:
- Los Angeles (average salary $128,053 per year)
- New York (average salary $126,922 per year)
- Tampa (average salary $105,438 per year)
- Orlando (average salary $104,909 per year)
- Denver (average salary $100,483 per year)
- Atlanta (average salary $96,823 per year)
- Miami (average salary $95,219 per year)
- Charlotte (average salary $90,892 per year)
- Westlake Village (average salary $74,054 per year)
According to data from ZipRecruiter, salaries are highest in New York, Massachusetts, and Washington.
Which Factors Affect How Much Mortgage Brokers Earn?
Multiple factors can affect how much mortgage brokers earn. These include:
The commission rate mortgage brokers receive will impact their annual income. Most brokers earn between 1% and 2% commission. The higher the commission rate, the more profit the broker will make.
Mortgage brokers that deal with clients who wish to take out large loans will earn more than those working with clients who need less money.
The commission is how mortgage brokers profit - the higher the mortgage value, the more commission the broker will earn.
Those who work in areas where properties are expensive and deal with clients looking for luxury homes are likely to have the best earnings.
Number of Transactions
Mortgage brokers earn commission every time a client takes out a mortgage. The higher the number of transactions, the higher the broker’s earnings.
Mortgage brokers who help a lot of clients take out a home loan will earn more than those who don’t secure as many transactions.
As we have already discussed, the city or state in which the broker works can influence their income greatly.
In areas where house prices are high, and clients are likely to take out higher value mortgages, mortgage broker salaries are likely to be higher.
Level of Experience
The broker’s experience can make a big difference in their earning potential, too. More experienced mortgage brokers often have higher salaries and know how to get better commissions, too.
Statistics from PayScale show that base salaries, which contribute to mortgage brokers’ total compensation, increase in line with experience, as follows:
- Less than one year: $42,000
- 5-9 years: $51,000
- 10-20 years: $75,000
Do mortgage brokers earn good money?
Mortgage brokers have the potential to earn good money. According to Indeed.com, the average base salary in the US is around $68,500. Salaries for mortgage brokers can vary hugely based on the broker's level of experience, location, and commission rate. Some mortgage brokers earn more than $120,000 per year.
How do I become a successful mortgage broker?
Mortgage brokers must obtain a license to practice in the US. This involves sitting and passing exams and assessments. Once you have a license, it’s beneficial to gain experience and build a contact list. You can choose to work for yourself or join a firm and work alongside other mortgage brokers.
What are the pros and cons of being a mortgage broker?
Mortgage brokers play an essential role in helping clients find the best mortgage deals and take the stress out of applying for a mortgage. It is satisfying to help customers buy their dream home, and there is an opportunity to make a lot of money, too. A mortgage broker's salary can be high, sometimes over $100,000 per year.
For years, the clients I worked for were banks. That gave me an insider’s view of how banks and other institutions create financial products and services. Then I entered the world of journalism. Fortunly is the result of our fantastic team’s hard work. I use the knowledge I acquired as a bank copywriter to create valuable content that will help you make the best possible financial decisions.
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