In real estate, what is broker premium ?
Answer:
Usually the term Broker Premium applies to real estate mortgage brokers. The broker is paid a "Broker Premium" by the lender -- sometimes this is called a "yield spread premium". Typically this term is not applied to real estate agents and/or their broker's commission.
The commission the broker gets.usually about 6%
what the broker charges her agents to use her office. in addition to / or in lieu of normal commission splits.
The money that a mortgage broker gets for charging their customers a higher interest rate. If interest rates are going for 6% and the broker charges 6.5% they get money on the "back end" from the lender. It's an incentive to charge a higher interest rate.
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