The Potential Is Unlimited

If you are thinking about becoming a mortgage loan officer, you will want to know how much money you could make in this position. As mortgage loan officers receive money on a sales basis, and therefore, income can differ considerably depending on a number of different factors.

With that in mind, below, we will take a look at this job in further detail, providing you with everything you need to know about this job role and the amount of money you may make.

The Potential Is Unlimited

How much do mortgage loan officers make? It is not a straightforward question to answer. This is because the take-home pay a loan officer makes can differ drastically. It all depends on how the person sells or closes within a given year.

If you are a top home officer, you could end up making in excess of $1 million per year. Of course, this is for those who are at the top of their game and have a good referral network throughout the year. Nevertheless, it certainly gives you something exciting to work toward.

The median income for a typical home loan officer within the United States was $63,270 in 2019. The lowest-paid 25 percent earned $44,840 while the best-paid 25 percent received an average of $92,960.

It is important that you do not pin your hopes on any of the figures you see, though, as the majority of home loan officers do not actually receive a base salary, which is why it is very difficult to determine an average salary amount. The majority are paid based on sales performance instead.

How much do mortgage loan officers make?

Bank Loan Officer vs Mortgage Broker

A mortgage originator can be either a loan officer is Federally registered, a mortgage broker is state registered. What does this mean? State licensed businesses generally require a licence to operate in that state. A federally registered originator just “must meet all requirements of the federal registration process.” Both should be registered on NMLS Consumer Access

According to the NMLS, ‘When you select a state from the regulator listing and click the Apply Filter button, all results for companies or individuals who do not currently hold a license in the selected state will be removed from the list of search results. Selecting “Federal” will filter results to only show those companies or individuals which are federally regulated.’

Understanding what a home loan officer Does

A mortgage loan officer is a professional who represents a credit union, bank, or other financial institution that helps borrowers in the application process. Loan officers are typically called mortgage loan officers because this is generally the most costly and complex type of loan that a customer could encounter.

A loan officer is going to be the direct contact for the majority of borrowers doing an application for a loan from a financial institution. The complete procedure can typically be handled online, yet the majority of people prefer to speak with a knowledgeable person face-to-face, as this is a complicated and costly transaction.

The home loan officer has the job of accepting the application from the borrower and ensuring it gets passed onto the underwriting department. They may also advise clients on the best loans for their situation, as well as communicating with the underwriter, ordering the appraisal, and gathering documentation throughout the process.

Mortgage loan officer tasks

Here is an overview of the typical tasks of a mortgage loan officer:

Opportunities for progression as a mortgage loan officer

In any career, a lot of people are going to be looking for growth opportunities. How can they progress in the future and earn a higher wage? You will be pleased to know that there are a number of different opportunities for progression as a mortgage loan officer. For example, you could progress as a Compliance Officer or a Mortgage Loan Processor. Some people also branch into becoming a Senior Loan Officer or even a Banking Branch Manager.

Some Important Terms to Understand

There are a few important terms that you need to understand when it comes to confirming and non-conforming. So, let’s take a look.


Index is an economic indicator that is utilized for the purpose of calculating interest rate adjustments for ARM loans. The index rate can decrease or increase at any time. The index most commonly used at the time of writing is the Constant Maturity for loans with the backing of the United States government, previously it was the London Interbank Offered Rate (LIBOR) for conventional loans. ARM’s generally have four components: index, margin, rate cap structure, base rate period.

Cap Structure

Cap structure is a numerical representation of every cap for the loan. This is presented in a series of three numbers that represent the three caps: lifetime, periodic, and initial.


Margin refers to the percentage point that your lender has predetermined. This remains the same throughout the entire life of the loan. It is used to figure out the interest rate for loans. Once the initial fixed-rate term concludes on an ARM, the interest rate will typically adjust yearly, and this new rate is determined by adding the index to the margin. Although this can result in the interest rate getting bigger, there are no caps on what it can increase.

Final Words

So there you go: hopefully, you now have a better understanding of what a mortgage loan officer is and the money they earn. It is important to realize that this is a position that is very much based on your sales performance. Therefore, you are in control of the money you earn to a certain degree.

New Century Financial Mortgage - NMLS 1967971

We at New Century Financial mortgage pride ourselves in offering a personalized approach to a range of home mortgage requirements, which is why we’re proud to provide an NMLS number that you can search, verify, and know that we are a licensed mortgage firm. When you work with us, you work with quality – and our NMLS number is the best way for you to see our backgrounds and more data about us.

Keep in mind, if you are looking to refinance, we can even help you calculate payoff on mortgage to learn you might owe. Connect with us to further discuss.

We also have commercial, aviation, yacht and construction equipment loans as well. We have access to various top wholesale lenders that fight for your business. and are owned by New Century Financial Mortgage, and we look to invest in technology. We hope this helps with improving the loan process so we can provide a better client experience for you..


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