How Much Do Mortgage Loan Officers Make?

Last updated 03/26/2024 by

Summary:

A mortgage loan officer position can offer you a fulfilling career with good pay in the mortgage industry. A loan officer in the United States earns, on average, about $50,000 a year. Some earn commission on top of that. You can become a mortgage loan officer by earning a bachelor’s degree, taking required classes, and passing a test to get your license.

There are many important factors when choosing a job. Salary, work-life balance, and the work environment are all things one should consider when thinking about what career you want. For those looking for a dependable, well-paying job in a good environment, becoming a mortgage loan officer is a position worth considering.

Loan officers generally work a 40-hour workweek and receive benefits. Most loan officers have a steady income, earning around $50,000 per year. Compared to other businesses in the mortgage industry, a loan officer’s job is not too stressful. Overall, becoming a mortgage loan originator could be a great career route for anyone interested in business, finance, accounting, or thse mortgage industry in general.

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What is a mortgage loan officer?

A mortgage loan officer represents a financial institution when helping borrowers obtain loans. They are also called mortgage loan originators. A loan officer can help borrowers find the mortgage loans that best suit them. Loan officers also act as a direct channel of communication between the borrower and the financial institution they represent.

Mortgage loan originators work for a variety of businesses in the financial industry. Some of these include mortgage companies, real estate agencies, lending institutions, bank branches, credit unions, and other industries in the mortgage business.

What do mortgage loan officers do?

A mortgage loan officer reviews loan applications and analyzes them to determine if the borrower is eligible for a loan. Mortgage loan originators also help clients understand loans and verify their information.

A mortgage loan originator usually earns an annual salary with benefits. Some earn an hourly wage. The majority of loan officers work a 40-hour workweek.

Duties and requirements

A loan officer is a borrower’s direct link to a financial institution. Many loan officers are expected to do the following:

Ensure that all the borrower’s needs are met
Facilitate the lending process for clients
Oversee lines of credit, personal loans, and mortgage loans
Help borrowers get the best deal on their mortgage loan
Understand the banking and mortgage industry

How do mortgage loan officers get paid?

A loan officer’s wage varies depending on their employer and years of experience. Mortgage loan originators earn an hourly wage or a flat salary. Some mortgage loan originators might earn commission on top of their regular payments.

Most companies offer full-time loan officers standard business benefits such as vacation time, sick days, insurance, and so on.

Loan officer salaries

The average for mortgage loan officer salaries is around $50,000. The base salary for a loan officer ranges from $29,000 to $77,000.

A mortgage loan originator’s salary will rise with more years of experience. In the United States, the average salary for loan officers based on years of experience is:

Less than one year — $38,000
One to four years — $41,000
Five to nine years — $52,000
10 to 19 years — $57,000
20+ years — $58,000

Salaries of similar professions

Loan processors

Loan processors usually get paid an hourly wage. On average, loan processors in the United States earn $17.43 per hour. The average hourly pay based on years of experience in the United States is:

Less than one year — $15.33
One to four years — $16.49
Five to nine years — $18.77
10 to 19 years — $19.88
20+ years — $19.81

Mortgage originators

Mortgage originators earn on average of about $48,000 a year in the United States. The base salary ranges from $32,000 to $82,000. The average yearly wage based on years of experience is:

Less than one year — $42,000
One to four years — $44,000
Five to nine years — $50,000
10 to 19 years — $63,000
20+ years — $62,000

Insurance Underwriters

The base salary for insurance underwriters is around $59,000 per year on average. Salaries range from $42,000 to $86,000. The average salary for insurance underwriters based on years of experience is:

Less than one year — $49,000
One to four years — $56,000
Five to nine years — $61,000
10 to 19 years — $64,000
20+ years — $70,000

Mortgage Broker Salaries

The average salary for a mortgage broker in the United States is $58,000. A mortgage broker’s income by experience level is:

Less than one year — $47,000
One to four years — $56,000
Five to nine years — $55,000
10 to 19 years — $65,000
20+ years — $69,000

How to become a mortgage loan officer

The path to becoming a mortgage loan officer usually begins with getting a bachelor’s degree. Most loan officers earn a degree in finance, business, accounting, or a related field. Potential loan officers must also earn their mortgage loan originator license by passing required classes and a test. Renewing a mortgage loan originator license also requires at least eight hours of classes.

Frequently asked questions

Is becoming a mortgage loan officer worth it?

Becoming a mortgage loan originator can be a steady and fulfilling career. The environment is not too stressful and the job can be enjoyable for the right person. If you are interested in business, finance, accounting, or a related field, becoming a loan officer is worth looking into.

Do loan officers have a base salary?

Yes, most loan officers have a base salary. In the United States, the average base salary is $50,000. Some only earn an hourly wage, and others get commission on top of their base salary.

Is a loan officer a stressful job?

Every job is stressful, and being a loan officer is no different. However, most agree that being a loan officer is not a high-stress position and is fairly manageable.

How long does it take to be a loan officer?

It will usually take at least four years, as most loan officers will need to have a bachelor’s degree. After earning your bachelor’s degree, you’ll need another 45 days, roughly, to take the required classes and tests to earn your license and become an official mortgage loan officer.

Are loan officers only paid on commission?

No, not all loan officers’ salaries are commission-based. Most earn a salary or hourly wage. Some earn a commission on top of their base salary.

Key takeaways

A mortgage loan officer represents financial institutions. They review and evaluate borrowers’ home loan mortgages for approval.
Loan officers earn around $50,000 per year, on average, in the United States.
Most mortgage loan originators earn a base salary or hourly wage. Some earn commission on top of this.
You should have a four-year degree and a mortgage loan originator license to become a mortgage loan officer.

Camilla Smoot

Camilla has a background in journalism and business communications. She specializes in writing complex information in understandable ways. She has written on a variety of topics including money, science, personal finance, politics, and more. Her work has been published in the HuffPost, KSL.com, Deseret News, and more.

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