How much money does the average mortgage broker earn per year?

Answer 1

As the old adage goes, that is like asking "How much does a car cost?" It depends. If you take an average during a huge refi boom, it may be lower, because so many people try to get on the gravy train and make very little. If you average only Brokers, you get a higher figure than if you include loan officers. I have been a broker for 15 years and make as much, generally, as I want to. If a broker actually works 40 hour weeks (as opposed to Surfing the net answering questions like these!) and is in a medium size market with about $125,000 average price for a home, they should be able to earn $6,000-10,000/month, BEFORE expenses. Marketing, office space and assistants eat up a lot of that in a hurry. A decent yellow pages ad runs over $1000/month. And believe me, folks still use the yellow pages. Net personal income probably averages $50,000/year. I have worked with Brokers in three states, and there are lots more making $40,000-50,000 than there are making $100,000+. I currently work in a market like this, but have also worked in a slow resort market and in Denver - a huge market with much higher prices. My income in every instance has been a direct reflection of how hard I worked and how hard I marketed my service. It is not a result of inflating prices or loan fees. There are lots of folks out there who do that but I really believe they make a quick set of big bucks and move on to something else where they can rob people. It is one of the few jobs where you really see a reflection of how hard you work in your income, but it is a witch of a way to make a living. I probably would not want my kids to do it. I have to accept responsibility for the mistakes of too many "unseen" people in the process and it gets harder as time goes on. People might get a couple of mortgages in their lifetime and they are usually scared - even otherwise sophisticated investors are nervous. They react emotionally to everything and you cannot blame them. My job is to get the work done as seamlessly as possible, without any problems becoming apparent to the Borrower yet keep them fully in the loop and informed. It is a delicate tightrope to walk and no one does it perfectly each time. If you have a high tolerance for pressure and want complete control of your life, go for it.