What are the costs of getting a Reverse Mortgage?

Much like a traditional mortgage, a reverse mortgage does have fees associated with securing it. The following is a list explaining common fees you may have to pay when getting your reverse mortgage.

Origination Fee – The origination fee covers the lenders operating expenses associated with making the reverse mortgage. This can include things like overhead, marketing and title searches..

Appraisal Fees – Before a reverse mortgage loan can be approved an appraiser will come to your home and inspect it. The appraiser will be looking to determine the worth of your home based mostly on condition, location and the current market situation. The cost of an appraisal will be billed at the time of the service and regardless if loan is approved.   

If the appraiser uncovers a significant problem you will be required to hire a contractor to fix the problem before obtaining your reverse mortgage. That same appraiser will come out again and re-inspect the property.

Mortgage Insurance Premium – The mortgage insurance premium guarantees that you will continue to receive your monthly payments and that you will never owe more that what your home is worth once the loan reaches maturity.

Closing Costs – Closing costs that are generally included in a reverse mortgage are:

  • Credit Report
  • Document Preparation
  • Flood zone certification
  • Termite inspection
  • Attorney’s fee and title examination
  • Recording fees
  • Escrow/Settlement fee
  • Other fees 
  • Appraisal and Counseling fees must be paid by the borrower at the time of the service and will be paid regardless if loan is approved

 

Apply Now to get started with your reverse application.

 

These materials are not from HUD or FHA and were not approved by HUD or a government agency. The Sender is not in any way affiliated with any organization listed or referenced within this website, including HUD/FHA. The inclusion of various education, information, web links, or materials are not an endorsement of the Sender or any of its employees or business partners. For information directly from HUD/FHA, visit http://www.hud.gov/hudclips

 

 

Reverse Mortgages are neither "approved" nor "endorsed" by the Federal Government. The FHA (Federal Housing Administration) provides certain mortgage insurance for lenders and borrowers in connection with the lender’s HECM loans; the FHA does not lend or originate loans. It is strongly advised that you consult with your family, trusted financial planner or attorney when considering any reverse mortgage loan. These materials are not from HUD (Dept. of Housing and Urban Development) or FHA and were not approved by HUD or a government agency