Learning Center
Reverse Mortgage Costs Explained
What the fees are, when they are paid, and how to judge whether they are worth it.
5 min read
Reverse mortgage costs generally fall into a few buckets: an origination fee, third-party closing costs such as appraisal and title, an initial FHA mortgage insurance premium on HECM loans, an ongoing mortgage insurance premium, and interest that accrues on the balance.
Most of these costs can be financed into the loan rather than paid out of pocket, which is why many homeowners come to closing with little or no cash.
Because no monthly payment is required, interest and insurance premiums accrue and are added to the balance over time. That is the trade-off: monthly cash flow now, less equity later.
The right way to evaluate the cost is not in isolation, but against the alternative — continuing a mortgage payment, drawing down investments, or selling the home. That comparison is exactly what a conversation with Walter is for.
Prefer to talk it through?
No pressure, no obligation — just answers to your questions.