The Senior Citizens Information Resource     

Closing Costs


Zero Origination Fee, Zero upfront Mortgage Insurance, zero closing costs and Zero Monthly Service Fee Reverse Mortgages are now available. Act now as this option will probably not be available Long Term.  



Some closing costs are negotiable. If someone tells you they are not don't believe them - get competitive quotes!!

They are:


1. Origination fee (HUD/FHA and FNMA Homekeeper)

2. Monthly Service Fee (HUD/FHA only)

3. Appraisal Fee (depending on your locale)***

4. Escrow fee ***

5. Courier Fee***

6. Pest Control inspection fee***

7. Title Insurance***


***May not be worth the effort but you can compare if you wish. We strongly recommend using a Title and Escrow company that understand Reverse Mortgages.  Using a Title and escrow (or closing Agent depending on your State of residence) not familiar with the paper work can result in some monumental problems.


Non-Negotiable costs:                                                                            


1. Government imposed fees of any ilk. (Recording, Taxes Etc)

2. HUD's Mortgage Insurance Premium

3. Flood Certification Fees (usually less that $20.00)

4. Document Preparation fees


Get quotes from various providers. Some providers work for less than others, some are simply greedy, some spend a great deal on advertising  which can be a considerable cost. (Radio, Television etc. is not cheap) Mass advertisers are generally not going to offer the least expensive closing costs. 


Why are HUD/FHA closing costs so high??


First, The Federal Department of Housing and Urban Development gets a fee equal to either 2.0% of your properties appraised value or the Maximum FHA Loan Limit of $625,500.00.


The Origination fee is capped at 1.50% or a maximum of $6,000.00(that's the fee you pay to the lender you are getting the loan through)  Some charge less, some charge more.


Get competitive quotes. Our fees are typically $2000.00 to $3,000.00 less than the Big Banks charge.  It's like shopping for a new car. You're going to get the same car no matter who you buy it from. The only difference is the price you pay.   Get a quote from us before you sign up or even after you do.


You can always use our Good Faith Estimate of Closing Costs as a lever to negotiate lower fees from whomever you have applied with.


For a no cost - no obligation Good Faith Estimate of closing costs on a Reverse Mortgage e-mail us the following information:


1. Zip Code property is located in.

2. Month and year of birth of all applicants or Ages

3. Approximate value of the property

4. Amount of existing mortgage if any.


You may inquire anonymously if you wish. The quote will be e-mailed to you within 24 hours, often much less than that.


e-mail your inquiry to:

Fax inquiry to: 760-888-2121

Phone Toll Free: 800-481-9999 weekdays or locally 619-299-9041

Home #619-299-3863 on weekends or evenings. Cell Phone is 619-606-1633


 Quotes provided by:  Kenneth W. Terrill, Reverse Mortgage Consultant.                                                                                                                              




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