Senior Equity Reverse Mortgage®
Fees associated with a reverse mortgage.
There are reverse mortgage fees associated with these products, many of which are similar to those you'd pay on a first mortgage. Certain fees can be financed with the loan, so you’ll have minimal out-of-pocket expenses. Fees can vary, depending on which reverse mortgage product you choose.
| Fee Type |
Description |
| Origination Fee |
A fee paid at origination that covers operating expenses to set up the loan. |
| Counseling Fee |
HUD requires that all prospective borrowers attend counseling with an approved counselor. This session is required to ensure prospective borrower(s) understand how a reverse mortgage works and to help them determine whether it is a solution that meets their needs. The cost of counseling varies and will be determined by the counselor. |
| Closing Costs1 |
A fee paid at origination, including all third-party-vendor costs. Closing costs may include an appraisal, title search, flood certification, title insurance and flood and hazard insurance where necessary. |
| Servicing Fee |
A fee used to cover the cost of servicing the loan. Costs may include monthly statements, insurance and tax verification, periodic property-maintenance inspections, and processing of withdrawals and other requests. |
| Mortgage Insurance |
The borrower will be charged a mortgage insurance premium (MIP) to reduce the risk of loss to the Department of Housing and Urban Development (HUD) or the lender in the event that the outstanding balance, including the accrued interest, MIP and fees, exceeds the value of the property at the time the mortgage is due and payable. (MIP does not apply to all products.) |
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