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Broker Compensation |
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In today's lending environment, you and your broker should work together to structure your loan to
best meet your goals and objectives. Your loan originator at Eastchester Mortgage will prepare
a loan proposal specifically designed to meet your individual needs. If you would rather pay less up front, or if you do not
have much cash available, you may finance your fees and costs through a higher interest rate. If
you would rather pay a lower interest rate, you may pay higher up-front points and fees. You
should review the options with your originator and agree upon the terms of the loan (including the interest
rate, points, and fees) and the amount to be paid to the broker.
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If you choose to finance some or all of the fees and costs, the broker will receive part of the broker's
compensation from the lender. This is in addition to, or in lieu of, up-front fees or points
paid directly by you to your broker. You pay indirectly for this lender-financed broker
compensation through a higher interest rate. The lender-financed broker compensation is
commonly referred to as a "yield spread premium."
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Usually, the specific amount of any broker compensation financed by the lender will not be known
until your broker locks in your loan with the lender, which will be after you have received your initial
Good Faith Estimate from your broker. The final amount of any such compensation will be shown
on your loan closing statement, known as a HUD-I. Upon request, you may review this
statement one business day before closing.
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You should discuss with your broker how to structure the interest rate and the amount of fees and
charges in the way that best suits your particular circumstances. Any questions you may have
concerning broker compensation and other fees and costs during the loan process can be answered by
your broker.
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