What are the costs of getting a Reverse Mortgage?

More information about reverse mortgages: Intro to Reverse   Reverse Calculator   Steps to Going Reverse

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 – With a HECM reverse mortgage the origination fee is equal to the greater of $2,000 or 2% of the Princial Loan Limit (lesser of home value or lending limit).  Origination fees can be bundled into the total mortgage.

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 value of your home based on condition, location, and the current market situation. The cost of an appraisal is generally between $375 and $400.

If the appraiser uncovers significant health or safety concerns you may be required to make repairs as a condition of obtaining your reverse mortgage.

Mortgage Insurance Premium – The mortgage insurance premium is a fee associated with the HECM reverse mortgage plan. This fee is equal to 2% of the Principal Loan Limit, plus an annual premium of 0.50% of the outsdanding loan balance.

The mortgage insurance premium is charged by the Dept. of Housing & Urban Development and guarantees that you will continue to receive your monthly payments and that you will never owe more than what your home is worth.

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

• Credit Report
• Document Preparation
• Flood Zone Certification  
• Title Search and Title Policy 
• Recording Fees
• Escrow/Settlement Fee
• Taxes and Insurance

(All closing costs may be financed by the loan)

Apply Now to get started with your reverse application.