Adam Jones

Loan Originator

  • Home
  • About Adam
  • Resources
    • First Time Buyer Tips
    • First Time Seller Tips
    • Closing Costs
    • Home Appraisal
    • Home Inspection
    • Loan Programs
    • Loan Process
    • Mortgage FAQ
    • Mortgage Glossary
  • Apply Now
  • Contact Us

What Fees or Costs Are Involved With a Reverse Mortgage? Let’s Take a Look

December 9, 2019 by Adam Jones

What Fees or Costs Are Involved With a Reverse Mortgage? Let's Take a LookAs a means of avoiding monthly mortgage payments, a reverse mortgage is a way for homeowners to tap into their equity in order to defer the payments on their home. While this can be a beneficial option for those who are older than 65, it’s important to be aware that – like any mortgage product – there are a number of associated fees. If a reverse mortgage is something you’re considering in the future, here are some of the costs you’ll be looking at.

Mortgage Insurance Premiums

In order to secure your reverse mortgage, you will be required to pay mortgage insurance premiums (MIP) at the time that you sign off on your reverse mortgage. The cost will be charged upon closing, and will continue to be charged throughout the entire period of the loan. While this amount will vary based on a variety of factors, it will be calculated using the lesser-appraised value of your home.

Origination Fee

Since a reverse mortgage is a different mortgage product, you may be required to pay an Origination Fee for all of the costs associated with processing the mortgage. This amount will differ depending on which lender you are using and it will equate to a small percentage of the total value of your home.

Servicing Fee

In addition to the fees required for switching your mortgage product, there will also be a monthly servicing fee to cover administration for the period of the loan. In addition to billing and statements, this amount will ensure that you are covered when it comes to your home purchase. While service fees are becoming a thing of the past, they are generally a relatively small amount of money.

Additional Third Party Fees

There are many fees associated with home ownership and a reverse mortgage is no different. As a result, there may be a number of third-party fees for items including appraisal costs, surveying, title fees and credit checks that will be required in order to close the process. Fortunately, most of these costs will be charged prior to or upon closing and will not persist throughout the mortgage period.

Many people would like to defer their monthly payment and utilize a reverse mortgage, but before deciding on this product it’s worth knowing what the associated costs are. If you’re currently considering your mortgage options and are wondering what is available, contact your trusted mortgage professionals for more information.

Adam Jones

Avatar

Filed Under: Home Mortgage Tips Tagged With: Home Mortgage Tips, Mortgage, Reverse Mortgages

Adam Jones

Adam Jones


Loan Originator
Fairway
Call (614) 499-9932
NMLS#1711681
Licensed to work in: Ohio, Florida, Illinois, Arizona, and Pennsylvania

Connect with Me

How can I help?

  • This field is for validation purposes and should be left unchanged.

Archives

Recent Articles

  • Key Points To Note When Drafting A Contract For A Remodeling Contract
  • Three Inexpensive Makeovers That Will Boost Your Home’s Appeal to Young Buyers
  • An Overview of Amortization: It Plays A Role In Monthly Mortgage Payments
Equal Housing Lender
Company NMLS #2289
For licensing information, go to: www.nmlsconsumeraccess.org

Privacy Policy | Terms of Use

Complaints may be directed to: (877) 699-0353 or Email us: customerservice@fairwaymc.com.
The content on this website is written by Adam and reflects his opinion, and not the opinion of Fairway Independent Mortgage Corporation.

Our Location


4215 Worth Ave
Columbus, OH 43219

Copyright © 2021 · Powered by MySMARTblog

Copyright © 2021 · Genesis Sample Theme on Genesis Framework · WordPress · Log in