About The Reverse Mortgage Fees

The reverse mortgage fees are basically the same costs you have to pay in order to obtain any loan. So, the reverse mortgage fees that you must expect to pay include the origination fee, the upfront mortgage insurance premium in case you decide to go for the FHA Home Equity Conversion Mortgage or HECM, an appraisal fee and some other certain standard closing costs. In many cases the reverse mortgage applicants can cap these reverse mortgage fees and costs and they can refinance them as part of the reverse mortgage.

The first of the reverse mortgage fees you will have to pay is the origination fee. This fee is meant to cover the lender's operating expenses for making the reverse mortgage and often include office overhead, marketing costs, etc. Under the most common reverse mortgage loan in the United States, the HECM, the origination fee is equal to the greater 2000 dollars or 2 percent of the maximum claim amount. For the FHA loan the reverse mortgage fees include an origination fee between about 3 to 5 dollars, because the FHA limit varies from about 160 dollars for rural areas to approximately 290 dollars for high-cost metropolitan areas.

The closing cost of a reverse mortgage include the credit report fee, flood certification fee, Escrow, Settlement and Closing fee, document preparation fee, recording fee, courier fee, tile insurance fee, pest inspection and survey.

The appraisal fee is the one responsible for assigning a current market value to your home and they vary between 300 and 400 dollars. In addition to that role the appraisal fee is also responsible for major structural defects as for example bad foundation, leaky roofs or termite damage.

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