Mortgage Broker Salary  

One of the primary concerns of people thinking of becoming a mortgage broker is income. What does a mortgage broker make? What is a good salary for a mortgage broker?

The answer is: it depends.

For a good mortgage broker, the salary, if there is one, is very low. This is because the mortgage broker would want to be paid on commission, not on salary.

A good mortgage broker is someone who can generate a lot of loans, or someone who can oversee others and help them generate a lot of loans. This is not easy to do. And so a salary would not be enough financial reward for the work.

Many loan officers when they start, do get a salary. But the majority start off working on commission. The job of mortgage broker or loan officer is a sales position. And as such, it is tied to production. The more you produce, the more you make.

If all loan officers and mortgage brokers were paid on salary there would be no incentive to do better or generate more loans because only the company would benefit.

The companies that do offer salary do so to help loan officers get started. Most of these companies are banks and larger lenders. The salary would be just enough to get by and sometimes not even that much, but at least the loan officer knows he/she won't go hungry. The goal is for the loan officer is to learn and generate loans so that he/she can earn more in commission than the salary he is getting. After that happens the salary is discontinued.

Other companies offer what is called a draw instead of a mortgage broker salary. A draw is payment now for future performance. So if you need money now, the company will give you a certain amount, say $1,000. But the next time you do a loan, the $1,000 will be subtracted from your commission.

The mortgage business is not for someone wanting a 9-5 job with a steady paycheck. If that is what you are looking for, then look elsewhere. The mortgage business deals with a lot of money, and has the potential for you to earn a lot of money.

The people that thrive are those that are determined. Those that want to make their own destinies. Those that have a reason to survive, other than just getting by.

A mortgage broker salary would be a handicap. It would keep you from reaching your true potential. Once someone learns the ins and outs of the business and how to market themselves, there is no reason to settle for a salary when you can make so much more on commission.

If you are looking for a firm to pay you a salary, there are some out there. But the job will be boring. You will be nothing more than a glorified order taker. If this is still what you want, start by checking out banks, then large retail lenders, and then places like credit unions.