Reverse Mortgage Closing Costs:
Historically the biggest problem with government insured reverse mortgages is the high cost. The high cost is mainly due to the Government insurance which is 2% times the value of your house. Or 2% of th maximum value of $625,500.00. The HECM Saver program has solved this problem it reduces the government insurance to .01% of the value or limit.
Costs have been drastically reduced on all reverse mortgage products. Most reputable lenders now offer no Servicing Fee Set Aside on most products. Keep in mind origination costs, rates, and the Service Fee set aside are negotiable, you should get more than one quote to compare.
We offer a free consultation from one of our approved licensed agents and will give you the lowest quote possible. We have long relationships with reputable lenders in your area. We can assure you that your buisness will be handled as a top priority and you will be treated like a friend of the family. You will get our lenders best offer first.
The lender will reduce the margins on the adjustable rate option to the minimum which is the most important way to save our customers money.
There are lenders offering no origination fee, but due to the 2010 GFE change this is an illegal statement unless it is made by the direct lender. They probably don't realize this is illegal and what they mean is that they are not going to charge the upfront origination (the borrower paid portion)..
Another very important factor for closing costs is title insurance. Some title companies charge higher fees and this can cost you a lot more money. Remember it is your right to choose the title company. We have a few options for all of our customers to choose from.