How Much do Loan Originators Make Per Loan?


How much do home loan originators make per loan?


It depends on the area you live in, the type of loan, the loan amount, and the originator.  What originators make is a % of the loan amount.  Rarely do they make a flat fee.  It ranges from 0.50% to 3.00% of the loan amount. 

  • The bigger the loan, the lower percentage of the loan amount they will make, and vice versa.  

  • Some areas of the country have different customary origination fee’s.  For example, I work in Marin County and originators here usually make 1 – 1.25%.  In parts of the East Bay (not far away), originators make a higher percentage.

  • The more complex and riskier the loan, the more the originator makes.  A construction loan will pay more becuase they are very complex and take a long time to do.

  • Certain originators charge a higher amount than others in the same area.  This based on the originators personal decision on what their service is worth.

If you are getting a conventional/fha loan, the you should expect your originator to make at least 1% of the loan amount.  This % is also going up in the last year because a loan takes more time and more money for the originator to close.  This is due to finicky lenders and ever changing lender guidelines.

Answered almost 7 years ago
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