Below, you will find the standard reverse mortgage closing costs associated with a HECM and also a link to current interest rates. Please contact us at (720) 514-3388 if you have further questions.
Closing Costs on a Fixed Loan
NO lender fees
NO points/origination
NO processing
NO underwriting
$125 Doc Prep Fee
$50 Repair escrow(only if needed)
$600-$1200 Title Insurance – You can work with any title company of your choice. We do work with two Colorado title companies that offer very competitive rates. You can get rate quotes directly from them below. In general, title insurance will cost roughly $600-$1200(one-time fee) depending on your loan amount. This fee gets rolled into the loan and does not need to paid for out of pocket.
Colorado Escrow and Title Fee Sheet
LSI Title and Company
FHA Up-Front Mortgage Insurance Premium(MIP)
Up-Front MIP is an insurance premium that is collected by the FHA when you initially take out the loan. The premium will vary depending on how much you borrow. If you borrow less than 60% of your home value, the MIP premium is a half a percent of your home value. Anything above 60%, the MIP premium goes up to 2.5%.
Up Front FHA Mortgage Insurance – .5%(half percent) of the appraised value if you borrow 60% or less(EX: $200,000 loan amount = $1,000)
or
Up-Front FHA Mortgage Insurance – 2.5% of the appraised value if you borrow 60% or more(EX: $200,000 loan amount = $5,000)
Closing costs + Mortgage insurance Example(fixed loan):
A 65 year old borrower owns a home that is worth $250,000 with a $120,000 mortgage. Borrower would like to get a reverse mortgage so he/she no longer needs to make a payment on the $120,000 mortgage balance. Since the homeowner has 50% equity in the home, they can payoff their $120,000 mortgage balance and only pay a .5% up-front mortgage insurance premium. (<60%)
$125 Doc Prep Fee
$900 Title insurance(estimate)
$1,250 Up-Front Mortgage Insurance (.5% X $250,000 Value)
$2275 Total Closing Costs(will be rolled into the loan)
Link to current HECM INTEREST RATES
Closing Costs on an adjustable Loan
The LIBOR Adjustable loan is a no cost loan. No closing costs or up-front mortgage insurance apply.