Beware of Reverse Mortgage Costs
Make sure when you are exploring a Reverse Mortgage loan that you understand all the fees and costs of the loan. The fees are higher but these are built in for protection features. If you would like a full breakdown of fees and costs please call 1-888-973-8377 and ask for Troy Shellhammer, he is a specialist and will disclose all information with you.
Beware of the Costs
But reverse mortgages are not cheap. Origination fees, the costs related to preparing and processing your loan paperwork, can take a bite. With an HECM, fees can cost up to $2,500 for a home worth less than $125,000. If the house has a value beyond $125,000, the fee is capped at 2% of the first $200,000 of your home’s worth plus 1% of any amount beyond $200,000. The most origination fees will cost is $6,000. Third-party closing costs could be anywhere from $2,000 to $3,000. There are also appraisal costs to consider. There’s also an insurance premium, which can be tacked onto the loan. Total non-interest costs could easily tens of thousands of dollars. A good tip: Don’t take on more credit than you need. Just because the bank approves you for a certain amount of money, don’t assume you’ll need it. Consider borrowing less.
Also visit Reverse Mortgage Coupons for money saving tips and coupons!
