HECM Fees

HECM Reverse Mortgage Fees

In addition to interest, a reverse mortgage typically involves four types of fees:

An origination fee
Third-party closing costs
Mortgage insurance premiums
A monthly servicing fee

You can generally finance these costs as part of your loan by having them deducted from the loan amount. When you apply for a reverse mortgage, I'll calculate the loan's Total Annual Loan Cost (TALC). It expresses all of the loan's various costs as an annual percentage and is similar to the Annual Percentage Rate (APR) calculated for standard forward mortgages. There is also a fee for the required HUD counseling service, which is not included in the TALC estimate. This fee can be paid up-front to the counseling agency and not financed as part of the loan. Depending on the type of reverse mortgage you get, you may also have a choice of having the lender pay the fee or paying it as part of the loan proceeds.

For more information on HECM Reverse Mortgages, or on HECM fees specifically, please feel free to Contact Us, or request your Free Quote today.