Reverse Mortgage Costs
As with a new home or a refinance of a home, there are costs associated with obtaining a reverse mortgage. The following are some of the fees associated with a reverse mortgage loan. It is important to note that many times these fees are capped to avoid large costs to pay upfront:
- Origination fee
- Insurance premium
- Appraisal Fee
- Closing Costs
Origination Fee
Origination fees are charged so that the lender may cover operating costs associated with their business.
Mortgage Insurance Premium
The Mortgage Insurance Premium is charged to protector you if your lender should go out of business.
Appraisal Fee
An appraiser will inspect your home and generate an appraisal report. This report is used to assess the value of your home and equity. The appraiser charges a fee to evaluate your home and prepare the report for your lender.
Closing Costs
Closing costs include a variety of fees that are associated with many types of loans, including reverse mortgage loans. Some of the fees included in the closing costs are, credit reports, flood certification, and escrow.
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