Reverse Mortgage Fees by MichaelDrew


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									Reverse Mortgage Fees
Reverse mortgage fees leave many people concerned with how much they have to pay to the lending
body. Nevertheless, getting a reverse mortgage is very useful if you need money, and if you are not
planning to transfer into a much smaller home, then fees are not a very crucial issue.

Generally, fees for reverse mortgage only become a disadvantage if the homeowners plan to move out
of the property sooner or later. The interest rates for reverse mortgages are usually comparable to
interest rates of other loans, and should not burden the homeowners since these are typically financed
by the mortgage itself.

Various Reverse Mortgage Fees
      Origination Fee.
       The lender of the reverse mortgage earns through the origination fee. The Federal Housing
       Administration utilizes a formula that determines the amount of origination fee that is charged
       to the borrower. In general, the formula is 2% of the initial property value of $200,000 and an
       additional 1% to the next $200,000 value. Nevertheless, regardless of the property value,
       origination fee cannot be higher than $6,000.
      Title Fees.
       The title fee is one of the reverse mortgage fees that take up the most amount. The property
       title guarantees the legal ownership of the borrower, so it is considered as one of the important
       requirements of getting a reverse mortgage. Title fees include the title insurance, search and
       exam, the settlement, recording, notary, document preparation, delivery, and payoff.
      Appraisal.
       To establish the legal actual value of the property, you need to have your home appraised.
       Appraisal is done by an appraiser who is licensed by the Federal Housing Administration. The
       cost of appraisal depends on the state and typically amounts from $475 to $550. Most of the
       time, properties with extensive damages or are located in remote locations have higher
       appraisal cost.
      …

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