Reverse Mortgage Costs

Understand the costs associated with a reverse mortgage, including origination fees, mortgage insurance premiums (MIP), closing costs, and servicing fees. A reverse mortgage is a loan secured by your home, and these costs can be financed into the loan, meaning you don't necessarily need to pay them out of pocket, but they will reduce your available equity.

Origination Fees

Lenders charge origination fees to process your HECM loan. These are capped by the FHA.

Mortgage Insurance Premium (MIP)

The FHA requires a mortgage insurance premium, which guarantees that you will receive your loan proceeds and that you or your heirs will never owe more than the home is worth (non-recourse feature).

Closing Costs

Standard real estate closing costs apply, such as appraisal fees, title insurance, and recording fees.

A reverse mortgage is a loan secured by the home. Borrowers remain responsible for taxes, insurance, property maintenance, and complying with loan terms.