Reverse Mortgage Costs – What Are They?

One of the wonderful things about the reverse mortgage costs including closing fees is that most times they are simply added to the loan.Many times a home mortgage loan requires the buyer to pay off of the fees associated with the loan up front. On the other hand, the reverse mortgage costs will not come from your pocket book. The good news is that fees that come with your seeking a reverse mortgage loan are simply added into your loan.

In some cases you may be required to pay a few fees upfront, but these fees are minimal compared to what you would pay in a typical home mortgage loan.

The Possible Reverse Mortgage Costs From Out of Pocket

Although you will gain some incite into what types of fees you can expect to have when obtaining your reverse mortgage loan, until you talk to your counseler, you won’t know exact figures on loan fees. The disadvantage of this is that your loan amount will be reduced as well.

Credit Reports – Although your income is not a consideration, nor your credit history, concerning your qualifications of obtaining a reverse mortgage, the banks are interested in any outstanding federal tax liens that may be on your home. They are also interested in any other types of judgements that may be on your home. Most times the fee will run about $20.00 to $25.00 for a credit report.

Possible Reverse Mortgage Costs That May Be Included Into Your Loan

The following fees will vary between states and even cities. They can also vary between lenders.

Depending on your location you may be required to obtain a flood certification, which will cost around $20.00.

Origination Fee – The FHA rules that the originator may charge you up to 2 percent of the total lending limit or your homes value, whichever of these is less.

Home Appraisal – Getting a home appraisal is of course a must and these fees vary greatly. This fee can be as low as $300.00 and run quite a lot higher depending on the area you live and the size of your home. Your home must meet FHA standards before you can obtain a reverse mortgage loan.

The FHA wants to make sure your roofing is sound and the foundation of your home is also in good shape.

Other fees include a courier fee, which covers the costs of mailing documents which are most often mailed overnight. This fee is usually around $50.00 or so. Recording fees between $50.00 to $150.00, this includes information such as Deeds of Trust and mortgages, all loans are recorded at the local County Recorder’s office.

Document preparations can cost between $50.00 to $100.00 or so. Pest inspections, $100.00, survey for the property line, $250.00, title insurance, which will depend on the size of your loan, the higher the loan amount the higher the fee for title insurance.

Reverse Mortgage Costs You Want Included in Your Loan

Finally, there is something called MIP or Mortgage Insurance Premiums. This is worthy of another article, because it involves making sure you never actually end up owing the bank more than you borrowed should your home decrease in value and for some unknown reason you will need to sell your home at some point. Visit reversemortgageproscons.com for more information regarding the reverse mortgage.