How much commission does a mortgage loan officer make?

How much commission does a mortgage loan officer make?

How much commission does a mortgage loan officer make?



Mortgage loan officers play a crucial role in the home buying process, assisting borrowers in securing mortgage loans. One important aspect of their compensation is the commission they earn for their services. In this article, we will delve into the topic of how much commission mortgage loan officers typically make and explore the factors that influence their earnings.

Commission Structure for Mortgage Loan Officers

Mortgage loan officers typically earn their income through a commission-based structure. This means that their compensation is directly tied to the loans they originate. The commission is usually a percentage of the loan amount, commonly referred to as the loan officer’s “cut.”

Percentage-Based Commission: The most common commission structure for mortgage loan officers is a percentage-based model. The exact percentage can vary depending on various factors, such as the loan officer’s experience, the lender’s policies, and the type of loan being originated. Generally, the commission ranges from 0.5% to 2.75% of the loan amount.

Flat Fee Commission: In some cases, mortgage loan officers may earn a flat fee commission instead of a percentage-based one. This means they receive a fixed amount for each loan they close, regardless of the loan amount. Flat fee commissions are less common but may be used by certain lenders or for specific loan products.

Factors Affecting Commission Amount

Several factors can influence the commission amount earned by mortgage loan officers. It is important to note that these factors can vary depending on the lender and the loan officer’s individual circumstances. Here are some key factors that can affect commission earnings:

Loan Amount: The loan amount is a significant factor in determining the commission. As the loan amount increases, the commission earned by the loan officer also increases. However, there may be a cap or maximum limit on the commission percentage for high-value loans.

Type of Loan: Different types of loans may have varying commission structures. For example, jumbo loans or loans with higher risk may offer higher commission percentages compared to conventional loans.

Loan Officer’s Experience: Experienced loan officers who have a proven track record of successfully closing loans may negotiate higher commission rates with their employers. Lenders often value the expertise and performance of experienced loan officers.

Loan Volume: The number of loans closed by a loan officer within a specific period can also impact their commission. Some lenders offer tiered commission structures where loan officers earn higher percentages as they reach certain loan volume thresholds.

Additional Compensation and Benefits

In addition to commission, mortgage loan officers may receive other forms of compensation and benefits. These can include:

Salary or Base Pay: Some loan officers receive a base salary in addition to their commission. This provides a steady income regardless of the number or size of loans closed.

Bonuses and Incentives: Lenders may offer bonuses or incentives based on performance metrics such as loan volume, customer satisfaction, or meeting specific targets.

Benefits and Perks: Loan officers may also receive benefits such as health insurance, retirement plans, paid time off, and other perks offered by their employer.


Mortgage loan officers earn their income through a commission-based structure, typically receiving a percentage of the loan amount they originate. The commission percentage can vary based on factors such as loan amount, loan type, loan officer’s experience, and loan volume. Additionally, loan officers may receive other forms of compensation and benefits, such as a base salary, bonuses, and various perks. It is important for borrowers to understand the commission structure of their loan officer to ensure transparency and make informed decisions.


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