What Are the Closing Costs on a Reverse Mortgage?

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What are Reverse Mortgage Closing Costs?

The closing costs for a reverse mortgage are dependent on the type of reverse mortgage loan chosen, the lender chosen and the money taken out upfront. Below find a list and brief explanation of typical fees at closing:
 

  • Loan origination fee covers the processing of the new application and compensates for completing the sale. The fee usually is a percentage charge of the loan amount, typically 0.5% to 1.0%. If your loan is for $200,000, you’d pay $1,000 or $2,000.
  • Lender fee compensates the lender for administering the loan and overseeing the taxes and insurance.
  • Title insurance covers the buyer and the lender from possible ownership disputes,
  • Recording fee covers the mortgage lien recorded with the county clerk.
  • Credit Report fee covers the fees for checking for any liens or judgements.
  • Flood Certification fee covers charges for confirming if property is in a flood zone. 
  • Preparation Fee for Documents covers fees for the preparation of closing documents.
  • Escrow and closing fee covers for closing services.

If you're interested in learning more about reverse mortgages, fill out the form below for a risk-free consultation with a reverse mortgage specialist

 
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