10/10 Anyone know where I might be able to find out approximately how much
real estate LOAN agents make per transaction versus real estate in the
East and South Bay? From what I know, most real estate agents make 50%
to 80% of 1.5% of the total transaction. How about real estate LOAN
agents? I know they get about 0.25% to 2% of the total loan amount. I
am interested in knowing if the real estate LOAN agents also add other
bogus charges, jack up the interest rates, etc. to make more money.
And, how much of that total amount do they get from their bosses.
\_ I do know that they make most of their money from buying loans
at "wholesale" and reselling them at "retail." The loan disclosure
docs tell you what they paid for the loan. In my first home
purchase, they bought the loan at 5.9% and resold it at 6.0%
to me, which meant that they made about 1.4% on my loan. It
was an owner operated business, so I assume they got all of it.
On my refi, I was not in such a rush, so I was able to negotiate
it down to 3/4 of a point, or .75%. In this case, the guy worked
for a big company, so I have no idea how much of it he made. And
yes, they will try and charge you more if you let them. In my
first loan, they tried to charge me 6.5%, claiming various bogus
reasons for such a high rate. So make sure you know what the
market rate is for you loan before you go in to negotiate. They
are called mortgage brokers, btw, not loan agents. Calling them
by the wrong name is confusing. |