If you’ve ever wondered what kind of money loan officers actually make, especially in commissions, you’re not alone. For many loan officers, commission is the primary driver of income. But like many sales-oriented roles, the answer to “how much?” isn’t always straightforward. It depends on the company, structure, volume, and even the type of loans being originated. In this post, we’ll break down the different commission models, typical ranges, and what impacts a loan officer’s earning potential.
The Basics: How Loan Officer Compensation Works
Loan officers typically earn income in one of three ways:
- Salary + Commission
Some companies offer a base salary plus commission. This structure offers more stability, often favored by retail lenders or banks. - Commission-Only
Common in broker or independent settings, this model rewards high performers with unlimited earning potential, but comes with more risk. - Flat Fee per Loan
Less common but sometimes used for junior LOs or in call center settings, this model pays a fixed amount per loan closed.
Typical Commission Ranges
Commission is usually calculated as a percentage of the loan amount or the loan revenue (i.e. the compensation the lender receives).
- Industry Average:
Most loan officers earn between 0.50% to 1.00% of the loan amount in commission. - Example:
On a $400,000 loan, a 1% commission equals $4,000.
At 0.75%, it would be $3,000. - Annual Income Potential:
- A loan officer closing 3 loans/month at $400k each with 1% commission could earn $144,000/year.
- Top producers closing 8–10 loans/month at higher volumes can earn $300,000+ annually, especially in hot markets.
Broker vs Banker: Who Earns More?
Loan officers working for mortgage brokerages often have more flexibility in pricing and can earn higher commissions—but they also carry more responsibility for sourcing their own leads and managing operations.
Loan officers at direct lenders or banks may benefit from more lead flow, in-house processing, and compliance support, but their commission splits are often lower.
Here’s a rough comparison:
What Impacts Loan Officer Commissions?
A few key factors affect how much a loan officer earns:
- Loan Volume – More loans = more commission.
- Loan Size – Higher-value loans pay more per deal.
- Comp Plan – Each brokerage or lender sets their own terms.
- Lead Source – Self-sourced leads often earn a higher split.
- Experience & Licensing – More seasoned LOs can negotiate better splits.
- Market Conditions – Interest rates, housing demand, and refi booms all play a role.
Beyond Commission: Other Earnings
Some loan officers also earn:
- Performance Bonuses – Monthly or quarterly bonuses for hitting volume goals.
- Override Pay – Team leaders or branch managers may earn a portion of team volume.
- Marketing Support – In some models, companies subsidize marketing and tech tools to help LOs grow their business
Is It Worth It?
If you’re motivated, entrepreneurial, and good with people, becoming a loan officer can be a highly lucrative career. But it takes hustle, persistence, and market savvy. Your commission is ultimately tied to your ability to build relationships, manage the pipeline, and navigate a changing lending landscape.
Want to Maximize Your Earning Potential?
At Morty, we support loan officers with tools, training, and tech that help you scale your business without giving up a big chunk of your commission. Whether you’re just starting out or ready to go independent, our platform is designed to help you earn more, close faster, and grow smarter.
👇 Book a demo or Learn more about our platform for loan officers.
