Typical Closing Costs for Reverse Mortgage
The typical reverse mortgage closing costs in the United States is based on the various fees that are charged on the loan. A reverse mortgage, which is available to homeowners age 62 and older, makes cash available to the senior, in the form of a fixed monthly payment or credit line. The resulting sale of the home in order to generate the proceeds requires the borrower to live in the home as their primary residence, properly maintain the home and any insurance and property taxes.
Types of Closing Costs
The fees associated with the closing costs include:
- 2 percent loan origination fee for the first $200,000, then a 1% over the $200,000. The origination fee is capped at 6%.
- 2 percent for the mortgage insurance premium, the amount is financed. Also, there is a .50 monthly mortgage insurance rate.
- Appraisal fee, the amount will vary
- Title insurance or search fees
- State and county stamp tax fees
- Underwriting fees
- Processing fees
- Recording fees
- Credit report fees
- Any broker or correspondent fees