[Hannah:)]

i am using a broker to find my mortgage, and his service is 'free' ,so i'm jsut wondering who pays him?

[Reena]

You. Once he finds you a mortgage you will end up paying brokerake fees that are hidden in your new mortgage.Don't think he doesn't get paid. His fees will just be tagged on to your mortgage.

[Property Manager]

Often times his commission is built into the loan. For example, if he offers you a loan at 7%, the actual interest may only be 6%. That 1% markup is his fee.

[cyoung85054]

Its called a YSP. Yield Spread Premium. Its basically a kickback form the bank for sending them your loan. Usually around 1% of the loan amount. In turn your broker will add 1/8 to 1/4 % interest on to your loan. They will give you some sorry excuse at the last minute about times are tough or your credit isn't as good as they thought it was. They have 100 excuses to give you but no matter which one it is its garbage. They will drop all this on you at the last minute during closing which will come down to sign the papers or you don't get the loan. I have seen it hundreds of times but I have to keep my mouth shut because I am a neutral 3rd party.

[Scott D]

first , always go to the lender yourself. do not use a broker. That get paid off int rate ( ysp ) and on loan origination fee, and on a bunch of other "closing cost". Go to direct lenders like bank of america , us bank, or your local bank and negotiate closing cost.