Broker Fee
Quick Summary
Compensation paid to the mortgage broker for arranging financing.
ELI5 Explanation
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It is the deal-structuring fee for finding and packaging your loan.
Detailed Explanation
Broker fees in private lending often range from 1% to 3%, depending on complexity and risk. They are usually deducted from advance proceeds.
Example
On a $300,000 loan with a 2% broker fee, $6,000 is paid to the broker.
Why It Matters
It changes net funds received at closing.