What type of fee might be charged by a mortgage broker based on the loan amount?

The correct choice reflects a common fee structure used by mortgage brokers when originating loans. An application fee is often assessed by mortgage brokers as part of their compensation for processing the loan application. This fee typically covers the costs associated with the initial paperwork, credit checks, and other preliminary assessments needed to evaluate a borrower's financial situation.

This type of fee is generally a fixed amount, regardless of the total loan amount. While it can vary from one broker to another, it is sometimes associated with the overall costs of obtaining a mortgage. This means borrowers should be informed of all applicable fees upfront, including the application fee, which is distinct from other fees that might vary based on the loan size.

In a different context, the other options could be relevant in specific scenarios. A percentage fee would typically be based on the loan amount, and a flat rate fee might be a consistent charge independent of the loan size, while a service charge can refer to incidental costs related to processing. However, in relation to the specific context of a fee directly charged by a mortgage broker based on the loan amount, the application fee is the most accurate and common classification.