We believe it is important that you understand how mortgage professionals and loan officers earn income for themselves. While there are two ways that loan officers earn income, many only tell you about one. The two methods are:

Origination Fee
A flat fee charged to the loan applicant based on a percentage of the loan amount. The industry standard is one percent (1%) of the loan amount.

Yield Spread Premium
A fee paid by the lending institution to the loan officer for "selling" the loan applicant a higher rate. Yield spread premium occurs when there is a spread between the best rate a loan officer could offer to the loan applicant and the interest rate the applicant accepts. The industry standard is AS MUCH AS POSSIBLE.

Please make sure you understand how this works, and feel free to call us at 834-5064 if you have any questions.

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