Do mortgage brokers receive a higher commission for delivering adjustable rate mortgages to the banks?
I’m a CPA but am not entirely sure how the mortgage brokering process works. I’ve received some sketchy information in the past indicating to me that the higher the rate is, the more of a commission the bank pays to the broker for bringing them the loan. I believe the exact terms are when the rate is above the bank “par rate”. Now I’ve heard that if the broker brings the bank an adjustable rate loan that the broker receives and even higher Commission. Is this true?
Thanks,
Craig R. Fechter, CPA
mortgages
Yes. Their commission comes from the rate spread. Adjustable mortgages and all those fancy instruments have higher yield spread premiums.
Unless you have a fixed-rate mortgage, the current mortgage interest rates are very important to deciding how much you should pay every month
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