One of the wonderful things about the reverse mortgage costs including closing fees is that most times they are simply added to the loan.In most cases the typical home mortgage has quite a lot of fees that are not included in the loan and these fees are required to be paid by the borrower upfront.On the other hand, the reverse mortgage costs will not come from your pocket book. The good news is that fees that come with your seeking a reverse mortgage loan are simply added into your loan.
In some cases you may be required to pay a few fees upfront, but these fees are minimal compared to what you would pay in a typical home mortgage loan.
The Possible Reverse Mortgage Costs From Out of Pocket
It is hard to determine which fees your lender will require you to pay upfront. While not having to pay the fees upfront is a great advantage, it will lower the amount you will be able to obtain from the bank as it is taken out of the amount you will qualify for.
Credit Reports – Although your income is not a consideration, nor your credit history, concerning your qualifications of obtaining a reverse mortgage, the banks are interested in any outstanding federal tax liens that may be on your home. They are also interested in any other types of judgements that may be on your home. It is for this reason that a bank will need to run a credit report. The fee for this can vary but will be somewhere around $20.00.
Possible Reverse Mortgage Costs That May Be Included Into Your Loan
The following information contains possible fees and possible amounts. However, consider each a ball park figure and nothing more. Each state, each city and even each loan lender will vary in the amounts charged as well as the types of fees that will be included.
Depending on your location you may be required to obtain a flood certification, which will cost around $20.00.
Origination Fee – The FHA rules that the originator may charge you up to 2 percent of the total lending limit or your homes value, whichever of these is less.
Home Appraisal – Getting a home appraisal is of course a must and these fees vary greatly. This fee can be as low as $300.00 and run quite a lot higher depending on the area you live and the size of your home. Your home must meet FHA standards before you can obtain a reverse mortgage loan.
Things you want to make sure are in good shape before you spend any money on an appraisal would be your roof and foundation of your home. No leaks or cracks that would damage or weaken the structural integrity of your home. Your home and property will of course also need to be up to your city codes.
Courier fees which run around $50.00 to $100.00 include having your documents mailed overnight to push the loan along quickly.
Document preparations can cost between $50.00 to $100.00 or so. Pest inspections, $100.00, survey for the property line, $250.00, title insurance, which will depend on the size of your loan, the higher the loan amount the higher the fee for title insurance.
Reverse Mortgage Costs You Want Included in Your Loan
There is also something called MIP or Mortgage Insurance Premiums. This is insurance on the value of your home at the time of the loan. What this does is protect you against the problems that would come from your home decreasing in value and in the case of your needing to sell your home, it means you will not owe the bank more than you can sell your home for. This is also another subject to be covered soon at reversemortgageproscons.com
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