Who Pays The Mortgage Broker?
You may have asked yourself, “who pays the mortgage broker” and you are asking yourself questions, but your question is not so hard, is it? In my opinion, this can be answered quite easily and fast. The answer is, “yes”, the banks pay the mortgage lenders, and the bankers and the insurance companies pay the mortgage broker for the loans they make.
This simple answer is what every home buyer should know about mortgages and how they work. Why is this so? Because mortgage lenders and the banks are businesses, they are profitable companies, but they can not survive by making money from the money of the people who take out loans from them, which is what mortgages are.
So what does this mean that the mortgage lenders and banks are paying the mortgage broker to make money for them? It means that the bank is not paying the fees to the mortgage broker, it means that the bank and the other mortgage lenders are not getting any profit from the loan that the mortgage broker is doing. But then again, the mortgage broker is a business, it makes its profits in two ways, the fees paid for the loan, and through commissions for every loan that they write. So now you know how to answer the question of, “who pays the mortgage broker”. You know that the banks pay the banker and the bank and the insurance companies pay the mortgage broker for their loans.
Now, if you know the way that mortgage loans work, and you understand the concept of mortgages, then you know that the bank pays the bank, and the banker and the bank and the insurance company pay the mortgage broker for the loan. Now the question becomes, “who pays the mortgage broker?” Well, there is only one person who pays the mortgage broker, the bank does not pay the mortgage broker because of their fee, but the bank pays the mortgage broker because the mortgage broker writes the loan, the bank will pay the mortgage broker based on the amount that the lender is willing to pay, usually, the bank will agree to the loan that the mortgage broker suggests, but sometimes the bank will not agree to the loan. The loan that the mortgage broker writes for the banker's client is called a “short term mortgage”.
Mortgages are “Short Term Mortgages” because they are loans for less than a year. This means that the term of the loan is only one year, but the period of time that you will be paying the loan for is longer than one year. If you are thinking about a vacation for one year, you need to remember to pay the vacation mortgage for one year, not the whole year. because that would be a long term vacation.
If you are thinking about a long term loan like a house or a car, then a long term loan will cost you more but not as much as the short-term loan, but the reason why is because the term of the long term loan will be longer, you will have to pay more in fees, more in taxes, but, you will be able to pay the car for a longer period of time. So, if you are planning on buying a house or buying a car for more than one year, do some comparison-shopping and find the best deal on your loan. So the answer to your question, “Who Pays The Mortgage Broker?”
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