Reverse Mortgage Fees

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Reverse Mortgage Fees

Reverse mortgage fees are something of which many people are intimidated. This should not be the case! Though there are fees associated with reverse mortgages, they can be easily understood by arming yourself with the proper education.

Reverse Mortgage Origination Fee

A reverse mortgage origination fee is similar to the origination fee of traditional loans. It is a fee that is charged by the lender for the work that is done on your loan. However, with H.E.C.M reverse mortgages, this fee is capped and regulated by the government. The reverse mortgage origination fee can be up to $6,000 depending on the loan amount. The maximum origination fee that can be charged is 2% of the first $200,000 of the maximum claim amount and 1% of anything after that, up to $6,000. For maximum claim amounts lower then $125,000, the maximum origination fee is $2,500. This fee can be negotiated or waived depending on your specific situation.


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