When mortgage broker charge you points to...

[transformers]

...lower your rate, who gets that points, the mortgage broker or bank?

[jamesnbarnes]

If the mortgage BROKER is charging points it is going lender they are selling the loan to. If a mortgage BANKER is charging points they could be going to buy the rate down or into their pocket. Since they banker is using his money to fund it, he does not have to disclose the cost of the loan. A mortgage broker has to disclose by law. That being said, it doesn't mean a mortgage banker will give you a bad deal.
If you want to tell me the terms you are being offered I can tell you if it is reasonable or your getting a bad deal. Although I am a lender, I am NOT soliciting your business. I just provide that service for my online friends.

[ttpawpaw]

The bank get those points. This is actually a prepaid interest. The broker works onder specific contracts with the lenders and it basically is a small % of loan value.
If you compare loans with and without points you will see that over time they are about equal. You will also points sometimes listed as "buydown" again it just a prepaid interest.pp