Reverse Mortgage Costs & Fees

Understanding costs helps you compare offers fairly:

Upfront Costs

• Origination Fee: Up to $6,000 (varies by lender)
• MIP (Mortgage Insurance Premium): 2% of home value at closing
• Appraisal: $400-$600
• Title & Recording: varies

Ongoing Costs

• Servicing Fee: $25-$35/month typically
• MIP (Mortgage Insurance Premium): 0.5%/year ongoing
• Property Taxes & Insurance: REQUIRED — you must pay these

What You Get for MIP

• FHA guarantee ensures you never owe more than home value
• Ensures lender cannot foreclose for non-payment
• Provides line-of-credit growth feature

Compliance Notice: Borrowers must be 62 years of age or older. HUD-approved counseling is required. A reverse mortgage is not a government benefit. The loan becomes due and payable when the last surviving borrower no longer occupies the home as their primary residence or fails to meet the obligations of the mortgage.