What are the costs and fees?

 

Costs associated with a Reverse Mortgage are very similar to those for a traditional mortgage. Most Reverse Mortgages have an origination fee, closing costs (appraisal, title search and exam), FHA mortgage insurance premium, and a monthly servicing fee.

 

These charges are paid by the Reverse Mortgage itself, making them no immediate burden to the borrower.

 

What is my out-of-pocket cost?

One of the major benefits of a Reverse Mortgage is that you can use the money you get to pay the various fees and costs.

 

All costs are simply added to your loan balance. You pay them, plus interest, when the loan becomes due.

 

Reverse Mortgages vary in features, benefits, and costs. If you are considering a Reverse Mortgage, be sure to ask the lender or counselor to explain the “Total Annual Loan Cost” for the various Reverse Mortgage products.

 

 

 

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