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Low-Cost-Reverse-Mortgage-Help
Low-Cost-Reverse-Mortgage-Help
Low-Cost-Reverse-Mortgage-Help
​iReverse Home Loans, Corporation
Branch Office * 8231 Tobago Lane, Wellington, FL  33414 * Branch NMLS #1613062
Branch Manager Russel Helfman M.B.A.   * Individual NMLS #387498
855-434-2349 (Phone) * 516-706-6125 (Fax)
Corporate Office * 7689 Sitio Algodon, Carlsbad, CA  92009 * Corporate NMLS #1564664
Low-Cost-Reverse-Mortgage-Help
We originate reverse mortgages in Florida, Texas and California
In Texas DBA “iReverse Home Loans of Texas, Corporation”
Costs
Similar to a traditional forward mortgage, a reverse mortgage has common fees associated 
with it.  Generally the closing costs, except the Counseling Fee and the Appraisal Fee, 
can be paid directly out of the reverse mortgage proceeds.  They are added to the loan and paid back when you sell the home. This means there are minimal “out of pocket” costs.


Listed below are the basic closing costs most borrowers will have to pay when obtaining a reverse mortgage.


Additionally, as with any mortgage loan, there will be interest charged on the principle funds advanced after closing. Some FHA HECM programs charge a monthly servicing fee paid to the lender which covers maintaining your reverse mortgage account.

Counseling Fee:
  • The counseling session usually costs between $89-$125 and is paid directly by the borrower to the counseling agency. 
  • In some cases this fee can be paid out of the proceeds of the reverse mortgage at closing.  

Origination Fee:
  • The origination fee covers the lenders operating expenses associated with processing the reverse mortgage.
  • For all FHA HECM reverse mortgages the origination fee is normally 2% of your loan limit. There is a minimum fee of $2,500 and a maximum fee of $6,000.
  • The origination fee can be financed into the closing costs and paid at closing.

Appraisal Fee:
  • As part of the loan application process, an FHA approved appraiser will come to your home to inspect and take pictures. The appraiser then creates a report, following FHA guidelines, that establishes a current market value of your home and property. The appraiser takes into consideration things like location and condition of the home. 
  • The standard FHA home appraisal is $450 for a single family home.
  • Should the appraiser find any problems that require repair (for example unsafe electrical wiring), most often you will need to get the problem repaired before your reverse mortgage can be finalized.  Usually, the same appraiser will return to your home and confirm the repairs have been made.  If the repairs needed are minor and not safety related, the bank can hold an appropriate amount of money in escrow to have the repairs fixed at a later date and the loan can move forward and close.  

​Mortgage Insurance Premium (MIP):
  • Paid to the Federal Housing Administration, the FHA sets the fee for the upfront reverse mortgage MIP at either 0.5% or 2.5% of your home’s value (up to the current FHA loan limit of $625,500). This fee can be financed into the closing costs and paid at closing.
  • The determining factor for the upfront percentage is whether the mandatory obligations (normally existing loan to be paid off and the new closing costs) to be paid by the proceeds from the reverse mortgage are below or above 60% of the total available funds.
  • Below 60% of available funds gets the lower 0.5% upfront MIP and mandatory obligations above 60% gets the higher 2.5% upfront MIP.
  • There is also a monthly MIP fee of 1.25% of the loan balance.
  • The mortgage insurance premium is a safeguard set up to protect the borrower. It guarantees that you will continue to receive your monthly payments and will never owe more on your loan than the current market value when it comes time to sell the home.

Third Party Closing Costs:
- The most common third party costs include:
  • Credit Report - Used to verify any federal tax liens or other judgments handed down against the borrower.
  • Flood Zone Certification – Determines whether the property is located on a federally designed flood plane.
  • Termite Inspection
  • Document Preparation
  • Attorney’s Fees
  • Title Search/Examination
  • Title Insurance – Insurance that protects the lender’s policy against any loss arising from disputes over ownership of a property.
  • Recording Fee – Charged to record the mortgage lien with the County Recorder’s Office.
  • Settlement Fees
  • State Specific Fees


In evaluating the fees associated with obtaining a reverse mortgage, it is important to consider how long you anticipate staying in your home. If you plan to live in your home a long time, then the fees are spread out over many years. If you believe there is a chance that you will only stay in your home short term, then getting a reverse mortgage may not be right for you…




If you have any questions about the Costs associated with a reverse mortgage, please contact us so we can explain any details of the program...
Low-Cost-Reverse-Mortgage-Help
Reverse Mortgage Help Desk - Rated A+, The Honest Place to Find out How the Loan Works and If It’s Right for You.  Low Cost Loans Our Specialty.
Reverse Mortgage Help Desk - Rated A+, The Honest Place to Find out How the Loan Works and If It’s Right for You.  Low Cost Loans Our Specialty.
Reverse Mortgage Help Desk - Rated A+, The Honest Place to Find out How the Loan Works and If It’s Right for You.  Low Cost Loans Our Specialty.
Reverse Mortgage Help Desk - Rated A+, The Honest Place to Find out How the Loan Works and If It’s Right for You.  Low Cost Loans Our Specialty.
Low-Cost-Reverse-Mortgage-Help
Low-Cost-Reverse-Mortgage-Help
Low-Cost-Reverse-Mortgage-Help
​iReverse Home Loans, Corporation
Branch Office * 8231 Tobago Lane, Wellington, FL  33414 * Branch NMLS #1613062
Branch Manager Russel Helfman M.B.A.   * Individual NMLS #387498
855-434-2349 (Phone) * 516-706-6125 (Fax)
Corporate Office * 7689 Sitio Algodon, Carlsbad, CA  92009 * Corporate NMLS #1564664
Low-Cost-Reverse-Mortgage-Help
We originate reverse mortgages in Florida, Texas and California
In Texas DBA “iReverse Home Loans of Texas, Corporation”