How much are mortgage broker fees

How much are mortgage broker fees

Most lenders pay the mortgage broker a procuration fee of about 0.35% of the loan size.

This means that, for a 100,000 euros mortgage, a typical fee would be 350 euros. You do not pay any of this, and it does not affect your costs in any way. However, it is still beneficial to find out what commission your broker would be paid. You need to be sure that the mortgage broker is choosing the deal that is best for you not just for them. In the next paragraph, you will know how big a fee should a mortgage broker charge?

How Big A Fee Should A Mortgage Broker Charge?

A mortgage broker’s fee can vary from around 0.3 percent of the loan size to as much as 1 percent. No one should be asked to pay more than this. Thus, for an average size mortgage of 150000 euros, a fee of 0.3 percent would be 450 euros.

Make sure you confirm your mortgage broker fee in advance with the written quote. You should get written confirmation so that if your mortgage deal falls through, there will be no

fee to repay. Remember, using a mortgage broker means that you spend less money over the long term. Thus, have the mortgage broker elaborate to you how their fee is justified.

Are Mortgage Broker Fees Worth Paying?

Mortgage broker’s fees are worth paying more than the money. This is because you are likely to recoup any fees you have paid with the savings you will make on your mortgage.

Apart from that, mortgage brokers usually do a lot more than recommended for a mortgage.

For example, you were to borrow 150,000 euros at an interest rate of 2.5 percent. Then, your monthly repayment would be 673 euros and you’d have to repay 201,903 euros over 25 years. If your mortgage broker could improve on that by even 0.1 percent then you’d have to repay 666 euros per month and a total of 199,694 euros and would save 2209 euros.

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