If you’re considering a career in mortgages, one of the first questions you might ask is: Do mortgage loan officers make commission?
The short answer is yes. Commissions are the primary way most loan officers (LOs) earn money, and they can lead to a lucrative career. But the details—how commissions are structured, how much you can earn, and how to maximize income—depend on the company model and your own strategy.
Mortgage loan officers usually earn through a mix of:
1. Base Salary (Optional)
- Some banks and credit unions pay a base of $35,000–$55,000 annually.
- Safe but limited income, with smaller commissions.
2. Commissions on Closed Loans
- Typically 0.3%–1% of the loan amount.
- Example: On a $300,000 mortgage, an LO might earn $900–$3,000.
- This means the more loans you close, the more you make.
For most loan officers, commissions make up the bulk of income.
→ Read more: how to become a mortgage loan officer with no experience?
Commission Structures by Employer
- Banks / Retail Lenders
- Lower commissions (0.3%–0.5%).
- Often provide leads, but income potential is capped.
- Independent Mortgage Brokers
- Higher commissions (0.5%–1%).
- Usually commission-only, with higher upside but more responsibility for sourcing clients.
- Loan Factory
- Keep 100% of your commission, pay only a flat $595 per file.
- No desk fees, no junk fees.
- Free access to the MOSO platform (CRM, LOS, pricing engine, marketing)
→ Read more: Mortgage Banker vs Loan Officer: Which Career Is Better?
How Much Can Loan Officers Earn in Commission?
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- Junior Loan Officer salary: $50,000–$75,000 annually (base + commission).
- Experienced Loan Officer: $100,000–$200,000+.
- Top Producers: $300,000+ with strong Realtor and referral networks.
Fact: In Q2 2025, the U.S. mortgage market processed $458 billion in originations. Even a small slice of that volume can mean significant commission income.
→ Read more: do mortgage loan officers work from home?
Real Income Comparison: Bank vs. Loan Factory
Imagine two loan officers each close 5 loans per month, average loan size $300,000.
Role | Commission Split | Net Earnings per Loan | Monthly Income | Annual Income |
| Bank LO | ~0.4% | $1,200 | $6,000 | $72,000 + ~$45,000 salary = $117,000 |
| Loan Factory LO | 1% – $595 fee | $2,405 | $12,025 | $144,300 |
Same loan volume, but the Loan Factory LO earns ~$27,000 more per year, plus free tools and mentorship.
At Loan Factory, you keep your commission, pay only $595 per file, and grow faster with:
- 100% commission – keep it all, pay only $595 per file.
- Free MOSO platform – CRM, LOS, pricing, marketing, and automation in one.
- 240+ wholesale lenders – real-time rate comparisons and 1-click locks.
- In-house underwriting + $500 processing – faster closings with less paperwork.
- Mentorship from Thuan Nguyen (#1 LO in the U.S.) – proven success strategies.
- No desk fees, no junk fees – save ~$963/month in tech and tool costs.
With Loan Factory, you keep more commission, close more deals, and gain the technology and mentorship to grow your business.
Start maximizing your income today—join our webinar or call 714-591-8143 to learn more about Loan Factory.
FAQs About LO Commissions
