Best Paying Careers

Written by Dana Hinders
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Loan officers have one of the best paying and most secure careers available in today's economy. In 2002 the average loan officer earned $43,980, with some loan officers earning over $90,000 per year. Experienced loan officers earn substantially more than their coworkers with less experience.

Commercial loan officers tend to make more money than loan officers who specialize in consumer or mortgage loans. The reason for this discrepancy is that commercial loans are typically for larger amounts, resulting in higher commissions for the loan officer. Commercial loan officers are also more likely to work in larger financial institutions with higher pay scales than other employers. As a general rule, loan officers who work in commercial banks can expect to earn higher incomes than those employed by mortgage brokers, savings institutions, or credit unions.

Loan officers can be paid in several different ways. They can receive a salary, commission only, or a salary plus commission. Loan officers who are paid on commission generally earn more than salaried loan officers. Loan officers who are paid on commission can especially expect higher incomes when federal interest rates decrease, since this normally results in an increased number of loan applications.

Effects of Education on Income

While it's not a requirement, loan officers with advanced degrees and professional certifications tend to earn more money than loan officers who obtain their knowledge strictly through on-the-job training. Formal education can result in a 10 to 15 percent salary increase. Loan officers with these added credentials are also more likely to be promoted to management positions with a higher income potential.

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