How Much Does a Mortgage Broker Make and Why Does It Matter?

Learning how much a mortgage broker makes is typically a good first step before entering the industry. It helps you determine whether your expected salary meets your expectations. Even once you are an established independent mortgage broker, it is wise to stay up-to-date with your industry peers’ average annual income.

 Being aware of the average salary for mortgage brokers can help you determine how much room for growth you have. For example, suppose you notice that you are on the lower side of the average salary. In that case, you may use this as an encouragement to make changes to increase your salary, such as improving communication with clients. You may also want to use the information to decide on your ideal work-life balance, based on the knowledge of what your salary could be if you spent much more time on work than life.

 But how much does a mortgage broker make?

 

How Much Does a Mortgage Broker Make?

The average salary for a mortgage broker in the United States can be anything from $50,000 to $90,000, depending on the source you look at. For example, PayScale reports that it averages $55,000, while Indeed reports an average of $92,250.

Most other sources list average annual salaries between these two points.

 In addition to looking at the average, you will also want to look at the full range of salaries reported, as this shows your earning potential as a mortgage broker. PayScale reports salaries between $35,000 and $128,000. That figure includes extremes, and Salary.com reports that the typical salary range is $74,400 to $98,300.

 As a reference, the same report from Indeed indicates that mortgage brokers charge commissions of 2.25%. Remember that you cannot charge a commission that is more than 3% based on federal regulations. It is common for mortgage brokers to adjust their commission based on competition in the housing market. More competitive markets would have lower commissions because this gives the mortgage broker an advantage.

 

What Influences How Much a Mortgage Broker Makes?

Numerous factors influence how much a mortgage broker makes, including:

  Location

  Education

  Years of experience

  Value of loans

 

Regions

As expected, there are regional variations in a mortgage broker’s salary. How much a mortgage broker makes will depend on the value of properties in the area and its competitiveness of the market.

Various resources outline average salaries by state, either in numbers or as percentages off of the average.

 Indeed outlines the highest and lowest salaries by state, by percentage, with some highlights as follows:

  Oregon: +57%

  Washington: +35%

  Nebraska: +30%

  Tennessee: +15%

  Texas: +13%

  Nevada: +9%

  Minnesota: +8%

  Colorado: +7%

  Illinois: +7%

  California: +2%

  Missouri: -7%

  North Carolina: -18%

  Arizona: -20%

  Florida: -24%

  New York: -28%

 

 The same source also outlines some of the cities with the highest salaries for mortgage brokers, including:

  San Diego, CA: $152,735

  Baltimore, MD: $134,431

  Denver, CO: $123,213

  Tampa, FL: $118,936

  Orlando, FL: $110,079

 

ZipRecruiter listed how much mortgage brokers make by state. It placed New York at the top on its list of averages, contrasting with Indeed’s low-income percentage for the state. Some highlights from the top and bottom of ZipRecruiter’s list include:

  New York: $84,680

  Massachusetts: $83,879

  Washington: $83,294

  New Hampshire: $81,634

  Hawaii: $80,560

  Mississippi: $66,895

  Missouri: $66,739

  Florida: $65,221

  North Carolina: $62,104

 

Years of Experience

PayScale also outlines the differences in the average salary for a mortgage broker based on experience. Based on those figures, the following is listed below for annual income:

  • Less than one year experience: $42,000
  • 1-4 years experience: $50,000
  • 5-9 years experience: $51,000
  • 10-19 years experience: $75,000
  • 20+ years experience: $69,000

 The odd part of these figures is the decrease after 20 years of experience, but the drop may be due to other factors, such as working less and enjoying more of life.

According to Chron, there is a similar growth in how much a mortgage broker makes based on experience, although this source has a peak salary earlier. According to this source, those with less than five years of experience earn an average of $52,000, which increases to $70,000 at five to ten years and $85,000 and more than ten years.

 

Aspects of How Much  a Mortgage Broker Makes – Job Growth Trends

Various sources agree that a mortgage brokers’ job is experiencing growth, although there is not much data from this year. The Bureau of Labor Statistics (BLS) previously anticipated an increase in 11% demand for mortgage brokers from 2016 to 2026. Considering we are less than halfway through that period, this figure is still relevant and optimistic.

The 10-year estimate two years later, from 2018 to 2028 for loan officers, which is a related field to mortgage brokers but not identical, was 8%. Since loan officers and mortgage brokers frequently work together, their job growth is typically tied. This prediction is also encouraging for mortgage brokers.

 

How Much Does a Mortgage Broker Make Vs. How to Earn More

Most mortgage brokers make their money via commissions on loans, either from the lender, borrower, or both. In the case of mortgage brokers who work for larger companies, they may also make a base salary instead of, or in addition to, commissions.

 

 Two Main Options to Earn More

 There are two main options for earning more as a mortgage broker. You can increase the number of loans you facilitate or increase your commission. Both of these require increasing your client base and standing out from the competition. To justify a higher commission, you must offer exceptional services, especially in competitive markets.

 The other option to earn more would be to cease being an independent mortgage broker and instead find a job with a company that offers a base salary plus commission or benefits. This would require weighing the pros and cons of independent work and a careful comparison of which method is more profitable.

 No matter which of the options, raising your commission, or increasing the number of loans you facilitate, you can try a few strategies to do so.

 

Be Responsive and Communicative With Clients

 One of the strategies to boost your earnings is to ensure you maintain communications with your clients, so they can easily reach you with questions or concerns. Podium Starter’s free messaging tools can help with this.

 By showing clients that you are easy to reach, they are likely to value your services more. Resulting in a potential increase in the commission you charge.

 

 Move to a Different Area

 Theoretically, you could increase how much a mortgage broker makes by moving, but this is more complicated than it sounds. If you cross state borders, you will need to get licensed again. No matter how far you move, you will also likely need to start over with marketing and building a client base. So, while this option offers the potential for a long-term increase, it will likely result in a short-term decrease.

 

 Focus on More Expensive Loans

 Since independent mortgage brokers are paid via commissions that are a percentage of the loan, facilitating loans with higher values results in higher commissions. Therefore, you could try to increase your earnings by focusing on higher-value loans. Focusing on these loans will likely require attracting a slightly different clientele.

 

 Increase Your Marketing Efforts

 If you decide to earn more by facilitating more loans, you will likely need to increase your marketing efforts. These efforts should involve digital advertising and partnerships, as well as other methods of generating leads. For example, if you build a relationship or partnership with a lender or real estate agent, you could find yourself with a steady flow of clients.

 

Summary: How Much Does a Mortgage Broker Make and Why You Should Care

The answer to how much does a mortgage broker make depends on your experience, location, the value of loans you work with, and a handful of other factors. Most estimates indicate that the average salary is around $50,000 to $90,000, starting at the lower end of the range and moving to the higher end as you gain experience.

 Being aware of how much mortgage brokers make is important, as it helps you determine if you are charging appropriately or are earning a reasonable amount. It can let you know if you are fairly compensated for your work or if you need to make changes.

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