How Mortgage Brokers Get Paid — Plainly
A mortgage broker is paid a fee for arranging your loan — by the lender or by you, never both on the same loan. The exact amount is disclosed in writing on your Loan Estimate before you commit to anything. Here’s how it works and what it means for your costs.
The Two Ways, Plainly
Lender-Paid
The wholesale lender pays the broker’s compensation when your loan closes. You don’t write a separate check to the broker — the cost is built into the loan’s pricing, and the amount still appears on your disclosures.
Borrower-Paid
You pay the broker’s fee directly as a closing cost, typically in exchange for different loan pricing. Some borrowers come out ahead this way; it depends on the numbers, which is exactly what a side-by-side comparison is for.
It’s one or the other on any given loan — federal rules prohibit both, and prohibit steering you toward a loan because it pays your broker more. The structure is chosen up front, and both paths get the same honest advice.
Where You’ll See It In Writing
Broker compensation isn’t buried — it’s a printed dollar figure on your Loan Estimate, the standardized disclosure every lender must deliver within three business days of your application, and again on the Closing Disclosure before you sign. If a term on either document is unfamiliar, our plain-English glossary covers all of them.
Why Brokers Can Be Cost-Competitive
A bank can offer you its own products at its own retail pricing. A broker shops your file across a panel of wholesale lenders — at Eureka, more than 25 of them — and wholesale pricing is often different from retail. That doesn’t make a broker automatically cheaper, and anyone who promises that isn’t being straight with you. What it does mean: you see real options side by side instead of one institution’s menu.
YOUR EUREKA MOMENT
Your broker’s pay was never a mystery — it’s a number printed on page 2 of your Loan Estimate. Once you know where to look, the whole transaction gets easier to trust.
Talk it through — no fees, ever →Questions We Hear
Do I pay the broker out of pocket?
It depends on how your loan is structured. With lender-paid compensation, the wholesale lender pays the broker’s fee. With borrower-paid compensation, you pay it directly as a closing cost, typically in exchange for different loan pricing. It’s one or the other on any given loan — never both — and it’s chosen up front, in writing.
Is a broker more expensive than a bank?
Not inherently — and sometimes the opposite, because brokers shop wholesale pricing across many lenders while a bank offers only its own retail products. The honest answer for any specific loan is on paper: compare Loan Estimates line by line, and we’ll walk yours with you.
Can a broker charge both me and the lender?
No. Federal loan originator compensation rules prohibit a broker from being paid by both the borrower and the lender on the same transaction, and prohibit steering you toward a loan because it pays the broker more.
Where do I see the exact number?
On your Loan Estimate — the standardized disclosure you receive within three business days of applying — and again on the Closing Disclosure before you sign. It’s a printed dollar figure, not fine print.
Why are your consultations free?
Because brokers are compensated when a loan closes, not for conversations. Asking questions, running numbers, or getting a second opinion never costs you anything at Eureka — no consultation fees, ever.
This page describes mortgage broker compensation practices generally, for education — it is not legal or financial advice, and your own Loan Estimate and Closing Disclosure govern your transaction. Eureka Mortgage Planning LLC – NMLS #2456819. Equal Housing Lender. This is not a commitment to lend. All loans are subject to underwriting and approval. For licensing information, go to http://www.nmlsconsumeraccess.org.