How Much do Loan Originators Make Per Loan?

How much do home loan originators make per loan?

1 Answer

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.