Mortgage brokers play a vital role in today’s mortgage market. An essential function, a mortgage broker performs is that of an intermediary who facilitates the sale of mortgage loans. This enables individuals to easily obtain mortgage loans from a wide range of financial institutions and lenders at competitive interest rates. Mortgage brokers are very experienced individuals who have expertise in the field of mortgage lending and have strong connections with a number of financial institutions and lenders. They often hold considerable amount of financial information from various sources and are able to give sound advice on selecting the best type of mortgage loan. Checkout Home Resolution for more info.
Mortgage brokers earn their money by charging a fee for their services. This fee is calculated on the basis of the number of transactions performed by their clients. A mortgage broker will be paid based on the amount of money which they direct you to borrow under a particular mortgage program. The fees charged by the broker include the commission, the mortgage insurance premium, and other miscellaneous charges.
One of the primary charges which you will be required to pay a mortgage broker includes the origination fee. This fee is calculated on the basis of the number of contacts made by your mortgage lender with your broker. The larger the number of contacts, the higher the origination fee. However, the origination fee is not applicable to all types of mortgage lenders.