This material is not provided by, nor was it approved by the Department of Housing & Urban Development (HUD) or by the Federal Housing Administration (FHA).

Insurance Premiums

If you’re thinking about taking out a reverse mortgage it means you’ve experienced the mortgage loan process at least once before. Remember how you had to pay a mortgage insurance premium (MIP) at closing, and had to pay it for the life of the loan? Reverse mortgages are no different.

Origination Fee

Origination fees, or a fee charged by a reverse mortgage lender is charged when entering a loan agreement, to cover the cost of processing the loan. Origination fees are strictly regulated by HUD, and insured by the FHA. This means there is a strict government- mandated cap on origination fees and percentages.

Reverse Mortgage Interest Rates

When it comes to reverse mortgage interest rates, there are a few things you should know. Your interest rates will depend on whether your loan is fixed or adjustable. Since fixed rate reverse mortgages eliminate the risk that the interest rate will increase, they’re an extremely popular choice among borrowers, but will limit your payment option to the single disbursement lump sum payment option. The choice between a fixed or variable rate is determined by what you are trying to accomplish with your reverse mortgage. Your Reverse Mortgage Specialist will also provide you with adjustable interest rate mortgage choices which offer five, flexible payment options and allows for future draws.

If you decide a reverse mortgage loan is right for you, one way to financially prepare for it is to keep the above fees and interest rate information in mind. Some reverse mortgage fees are put in place to protect you, and others are federally capped or regulated to provide you with an additional layer of security. In most cases, the closing costs can be rolled directly into the loan amount.

We recognize this is a difficult time for many people. Click here or call 866-913-2951 for more information and to learn about current options available to our borrowers.