How to Calculate Mortgage Broker Commission

The commission of mortgage broker is calculated differently as compared to stock, insurance or real estate broker. However, it is based on a particular dollar amount which can be a percentage of the total cost of the stock, value of the property or the amount of the loan. Some brokers also charge a standard fee (flat commission) for their services. If you are looking forward to take a mortgage loan, you can easily calculate the commission of the broker by either turning a dollar amount into a percentage or turning a percentage into a dollar amount.


  • 1

    If you are going to sell your house for $200,000 through a real estate broker who charges 4% commission on the value of the property. You can easily calculate the commission which you have to pay to your broker $8,000 ($200,000 x 0.04). On the other hand, if your broker has charged you $8,000 for selling your property, you can calculate the percentage of the commission by dividing $8,000 by $200,000.

  • 2

    If your mortgage broker has charged $2,000 as flat fee on getting a loan of $350,000 for your home, you can easily calculate the amount of commission by dividing the flat fee by the loan amount i.e. $2,000/$350,000 = 0.0057. In order to verify your answer, you can simply multiply the percentage by the loan amount.

  • 3

    It is very important for you to know that some brokers charge commission based on the services which they provide. Sometimes, you just require a broker to get the mortgage loan for your house. In this case, you just have to calculate the amount of the commission of the amount of the loan. On the other hand, if your broker provides you additional services for example, if he manages all your documents and gets the copy of your credit history, you will have to pay some additional fees which can either be fixed or fluctuating.

  • 4

    If you are employing the services of more than one broker, you will have to decide the commission of both the brokers while signing the contract. Sometimes, you just have to pay the amount of the commission (based on a fixed percentage) to only one broker who shares it with the other broker. But, sometimes, you have to pay each broker separately.

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