If your loan agent is making a one point rebate is there any way you can have him lower his margin so you can get a better rate?

Answer 1

No, one point is more than fair and you should be happy that you got the loan....loser

First, it's not a rebate. It's his commission or fee, generally paid by the one giving, not getting the money. Second - Certainly he could rebate to you some portion of it, like anyone could give you a discount on their fee. But here's where the above contributor, while a bit over the top, is correct...it's the common fee and how he makes a living..and you want to get him lower...how about if he provides a lower level of service...that OK? Third - HE probably only gets a portion of the 1%. He probably works for a loan/mortgage brokerage or company that gets the 1% and they either co-operate with other brokers (who also get a share just to start), and or, the fee is split in the Company...they keep half, (for providing his office, benefits, advertising, leads, sources of funds, etc.). Or if he is entirely independent...he makes 1% and has to pay for his own business expenses...office and support, copier, phone, car, advertising, insurance, training, etc., etc., and nets only a small portion of that 1% anyway. He could actually lose money on some loans...especially as a $100,000 loan only generates a $1,000 total fee to be split by all those involved or pay the costs of the business.