Definition
An intermediary who connects borrowers with lenders but does not directly fund loans. Brokers shop multiple lenders to find the best rates and terms for the borrower's situation. They are paid a commission (typically 1-2% of the loan amount) by either the lender or borrower. Using a broker can provide access to a wider range of loan products and potentially better rates than going directly to a single bank or lender.
Related Mortgage Terms
- Annual Percentage Rate (APR)
The total annual cost of a mortgage expressed as a percentage, including the int...
- Loan Estimate
A standardized three-page document that lenders must provide within three busine...
- Origination Fee
A fee charged by the lender for processing and underwriting the mortgage, typica...
- Amortization
The process of paying off a mortgage through regular monthly payments of princip...
- Appraisal
A professional assessment of a property's market value conducted by a licensed a...
Understanding mortgage terminology helps you compare loan offers and make informed decisions. Use our mortgage calculator to see how these terms affect your monthly payment.