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October 19, 2006 12:24 PM

Deciphering Reverse Mortgage Cost: Closing Costs


Other closing costs that are commonly charged to a reverse mortgage borrower, include:

-Credit report fee. Verifies any federal tax liens, or other judgments, handed down against the borrower. Cost: Generally under $20
- Flood certification fee. Determines whether the property is located on a federally designated flood plane. Cost: Generally under $20
- Escrow, Settlement or Closing fee. Generally includes a title search and various other required closing services. Cost: $150-$450
- Document preparation fee. Fee charged to prepare the final closing documents, including the mortgage note and other recordable items. Cost: $75-$150
- Recording fee. Fee charged to record the mortgage lien with the County Recorder's Office. Cost: $50-$100
- Courier fee. Covers the cost of any overnight mailing of documents between the lender and the title company or loan investor. Cost: Generally under $50
- Title insurance. Insurance that protects the lender (lender's policy) or the buyer (owner's policy) against any loss arising from disputes over ownership of a property. Varies by size of the loan, though in general, the larger the loan amount, the higher the cost of the title insurance.
- Pest Inspection. Determines whether the home is infested with any wood-destroying organisms, such as termites. Cost: Generally under $100
- Survey. Determines the official boundaries of the property. It's typically ordered to make sure that any adjoining property has not inadvertently encroached on the reverse mortgage borrower's property. Cost: Generally under $250

Source: ReverseMortgage.org







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